Just when you thought it was safe to head to the pumps and out on the roads at the tail end of summer break before students go back to school next week -- BAM, we got hit by sticker shock at the station.
AAA reports gas prices in Florida rose 30 cents in the past two weeks to the highest levels of the summer. They hit $3.67 per gallon in Florida over the weekend, and $3.75 nationally. Why? Oil prices and refinery efficiency, they say.
"Oil prices are the primary culprit behind the recent jump at the pump," said AAA spokesperson Mark Jenkins. "The U.S. price of oil rose 15% through the past five weeks, which raised the cost of producing gasoline."
Earlier this month, when gas prices were lower, the U.S. price of oil traded at around $70 per barrel. On Friday, the price of oil settled at $80.58 per barrel.
According to the Oil Price Information Service (OPIS), prices are being sent higher by strong economic data, which raises expectations for fuel demand. Additionally, record-breaking heat has led to some refinery outages along the Gulf Coast in Texas and Louisiana, leading to reductions in fuel output. The latest data from the U.S. Energy Information Administration shows refinery operations in the Gulf Coast last week at 93.3%. That's down 1.5 points from the previous week and significantly lower than the 97% rate refineries were operating at last year. That has created a dip in reserves.
Locally, prices for regular unleaded average $3.64 in Osceola County. That's up 19 cents in a week and 42 cents over the last month. But, prices are down 22 cents from this time last year, and in other good news, prices should be inching lower over the coming days.
