Florida gas prices have dropped to $3.30 per gallon, the lowest in four months, due to weakened oil and gasoline futures markets.
Florida gas prices have reached their lowest point in four months, offering financial relief to motorists as tourism season comes into full swing.
The state average has seen a steady decline over the past 17 days, according the AAA, falling a total of 25 cents to settle at $3.30 per gallon as of Sunday and marks the lowest daily average since February 28. The decrease in prices began modestly, with daily reductions of about one cent for a week. However, the pace quickened over the last nine days, resulting in a more pronounced 19-cent drop. As a result, Florida’s average gas price is now 15 cents lower than a week ago, 22 cents lower than a month ago, and 9 cents lower than this time last year.
“Floridians and summer visitors will be pleasantly surprised when they go to fill up the gas tank this week,” said Mark Jenkins, spokesman for AAA – The Auto Club Group. “Gas prices are the lowest in several months because of weakness in the oil and gasoline futures markets.”
The recent decline in gas prices can be traced back to fluctuations in the oil market. Throughout March and April, U.S. oil prices ranged from $80 to $85 per barrel. Over the past three weeks, crude prices have dropped by 6 percent, closing at $75.53 per barrel on Friday—a decrease of almost $5 per barrel from three weeks ago.
Oil analysts at OPIS attribute the market weakness to a stronger U.S. dollar and robust employment data, which have raised concerns that the Federal Reserve might delay interest rate cuts. Such a delay could potentially stall fuel demand growth.
Furthermore, a recent agreement between OPEC and its allies to gradually ease some voluntary output cuts later this year has also contributed to the drop in oil prices, as it is expected to increase global fuel supplies.
Florida’s most expensive metro markets are West Palm Beach-Boca Raton at $3.52 per gallon, Naples at $3.42, and Miami at $3.39. The least expensive metro markets are Crestview-Fort Walton Beach at $3.08, Panama City at $3.11, and Pensacola at $3.13.