A third week of double-digit cents-per-gallon increases has pushed Florida gas prices to their highest levels of 2023, AAA reported Monday morning.
After surging 18 center per gallon last week, the state average reached a new 2023 high of $3.84 per gallon – topping the previous high of $3.72, set back in April. For perspective, on July 4 the average was $3.27 per gallon, a jump of 57 cents in about 32 days.
"Florida gas prices are now the highest since August of last year," said AAA-The Auto Club Group spokesman Mark Jenkins. "These surging prices have been driven by a couple of factors. Extreme temperatures along the gulf coast has kept refineries from operating at full capacity. Globally, oil prices are significantly higher than a month ago, as OPEC production cuts cause global oil supplies to tighten."
About half the price per gallon of gasoline is influenced by oil prices. When gas prices were lower last month, crude oil was trading just below $70 a barrel, AAA said. Now oil is trading above $80 per barrel, and Friday's closing price of $82.81 is just 45 cents below the 2023 high. This is all primarily due to tightness in the global oil market; Saudi Arabian officials said they would keep production levels low.
Osceola County prices ($3.83) mimic the state and national ($3.82) averages. Locally, we were at $3.65 a week ago, and $3.31 a month ago. It was even cheaper this time last year ($3.75)
Extreme temperatures in the south have prevented fuel refineries from operating at full capacity, AAA said. Refineries already generate incredible heat while operating. When outside temperatures exceed 100 degrees, that can cause breakdowns and equipment failures.
"There are some factors that should help alleviate some upward pressure on fuel prices, but one major wild card that could cause them to spike again," Jenkins said. "Last week's supply report showed improvements in refinery operations. Additionally, gasoline demand may soon move lower as students return to school, signaling the end of the busy summer driving season."
But, a wild card continues to be the weather -- August through October signals the peak of hurricane season, and gas prices could spike just based on the mere threat of a major hurricane entering the Gulf of Mexico and hampering refineries along the Texas, Louisiana and Mississippi coastlines.
