Florida gas prices declined four cents per gallon last week. Drivers are now paying an average of $3.38 per gallon, which is the lowest daily average since January.
“There’s actually downward pressure on pump prices, despite the forecast that a hurricane would approach Florida this week,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “Gasoline and oil futures prices plunged seven percent last week, to eight-month lows on concerns that aggressive interest rate hikes by the U.S. Federal Reserve could trigger an economic recession.”
“Since Tropical Storm Ian is not projected to impact the refineries in Louisiana, Mississippi, and Texas, it’s unlikely that the storm itself or the resulting demand would cause pump prices to spike,” Jenkins said.
Demand Spikes Lead to Temporary Fuel Outages
In the coming days, it’s possible that gas stations will temporarily run out of fuel due to increased demand from evacuees or people topping up their tanks and filling spare gas cans. However, it’s also important for drivers to remember that these outages are temporary.
Gas stations are not connected to an underground pipeline. Just like your vehicle, each gas station can only hold so much fuel at a given time. That fuel is stored in tanks underground. Once those tanks are empty, retailers bag the pumps and wait for the next delivery truck. Sometimes that can be the same day, sometimes longer. It can vary.
Florida’s gasoline is primarily provided by refineries in Texas, Louisiana, and Mississippi. That gasoline sails into Florida’s ports and then is picked up by tanker trucks and delivered to area gas stations. Fuel deliveries should continue until the weather conditions make it unsafe to do so.
Once the storm passes and the ports reopen, shipments of gasoline will begin flowing into the state again. Gasoline can also be driven over from surrounding counties or states that are not impacted by the storm.
“The bottom line is, don’t panic about gasoline supplies. Just take what you need,” Jenkins continued. “The state makes it a priority to keep gasoline shipments going as long as it’s safe to do so. Once the storm passes, shipments will resume as soon as possible.”
Gas Price Gouging
If gas prices were to increase as this storm approaches – even after a state of emergency was declared – AAA is often asked whether that is considered “price gouging”?
Typically, the answer is “not necessarily.”
During a storm-related state of emergency, retailers like gas stations are prohibited from significantly raising prices beyond what they’ve charged in the past 30 days. The exception is if the cost of obtaining that commodity increases for the business owner. For example, if oil prices unexpectedly surged this week and wholesale gasoline prices spiked, that could raise the price for retailers to obtain their next shipment of gasoline, enabling them to pass along the added expense to consumers.
It’s important to note that even though the state average is $3.38 per gallon – pump prices can still vary dramatically depending on the city or street.
Even still, if drivers suspect foul play, they’re encouraged to report it. For more information on price gouging and how to report it, visit the Florida Attorney General’s website.
Regional Prices
- Most expensive metro markets – West Palm Beach-Boca Raton ($3.57), Tallahassee ($3.47), Gainesville ($3.45)
- Least expensive metro markets – Pensacola ($3.17), Crestview-Fort Myers ($3.18), Panama City ($3.26)
and then 