Florida gas prices took an unexpected turn higher last week. After sinking to a 2022 low of $3.17 per gallon on Wednesday, the state average shot up 16 cents per gallon over the course of four days, in what became the largest weekly increase since June.
“The jump at the pump came as a surprise, as this time a week ago, it appeared that the state’s gas tax holiday would pressure prices lower,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “However, things changed quickly after OPEC and its allies announced plans to cut oil production by 2 million barrels per day. This sent oil and gasoline futures prices back to 5-week highs. As a result, the price for retailers to purchase gasoline jumped more than 30 cents, erasing any of the downward progress created by the 25 cent sales tax holiday.”
In full, the U.S. price of oil rose 17% last week. Friday’s closing price of $92.64 per barrel was $13 more than the week before. Since oil is a key ingredient in gasoline, this raises the cost of producing, buying, and selling the fuel.
Florida drivers are now paying an average price of $3.33 per gallon, according to AAA.
That’s 7 cents more than the average price last Sunday and closer to what drivers paid on October 1st ($3.38) than on October 2nd ($3.26).