Gas prices in Florida fall 13 cents in a week, but that could soon change

In Florida, gasoline prices have fallen 13 cents per gallon since last week. The national average price was $3.32 on Monday.

In Palm Beach County, which typically has the highest gas prices in the state, prices averaged $3.49 on Monday, down 13 cents from a week ago. A year ago, the average price at this time was $3.91.

According to the AAA Auto Club Group’s weekly gasoline price list, this is the lowest average daily price since June 19.

“Motorists were able to feel some relief at the pump last week as crude oil and gasoline futures prices fell sharply,” said Mark Jenkins, spokesman for the group.

“Fuel prices have been under downward pressure due to concerns of a global recession,” Jenkins continued. “However, futures prices regained some ground last week on renewed economic optimism, which could lead to a slight increase at the pump.”

Until last week, the US price of crude oil had been on a downward spiral for four weeks. During this period, oil prices fell by 13 percent.

Last week, prices rose 5%, with Friday’s close at $76.84 a barrel – still well below the mid-$80 range.

According to the Oil Price Information Service, oil prices rose on expectations of a US interest rate cut in September and ongoing fears of an escalation of conflict in the Middle East.

Gas station food: Sandwich originates from New Jersey, but is served hot from the grill at this gas station in PB County

AAA Auto Club South, Gas Buddy: 6 reasons Palm Beach County always has the most expensive gas in the state

Regardless of whether gas prices in Florida are rising or falling, prices in Palm Beach County are almost always the highest in the state.

Experts from AAA Auto Club South and Gas Buddy say there are numerous reasons for the dubious distinction.

According to AAA, the biggest differences are the cost of living and operating costs, but there are other factors that contribute to this as well.

Here they are:

1. Competition or lack of competition

Gas stations near discount retailers like Costco and Sam’s Club are also likely to offer lower prices. Conversely, if there is no major gas station operator in an area, prices are usually higher.

2. Price zones

A pricing system called zoning takes into account the number of competing gas stations, the number of vehicles, average traffic flow, population density, income levels and more. Price zones set by gasoline suppliers can result in different prices for the same brand at gas stations several kilometers apart.

3. Fuel tax rates

At 39.4 cents per gallon in state and local taxes plus 18.4 cents in federal taxes, that comes to 57.7 cents per gallon in Palm Beach County. But 30 other Florida counties have the same gasoline taxes, the highest in Florida.

4. Distribution costs

These vary depending on how far the trucks have to travel from a terminal to a gas station. Palm Beach County does not have a gas station terminal. Port Everglades in Broward County is South Florida’s main storage and distribution center for refined petroleum products, and all of Palm Beach County’s gasoline comes from there.

5. Property taxes, insurance and leasing costs

These rates tend to be higher near airports and freeway on- and off-ramps, as well as in higher-income communities such as Boca Raton and Jupiter.

6. The market

Gas station owners charge what the market will bear. In a wealthy county, that means prices are higher. Higher income communities also tend to have fewer gas stations, which means less competition. What it boils down to? They charge more because they can.

Gasoline prices in Florida as of Sunday, August 11

∎ Most expensive metro markets – West Palm Beach-Boca Raton ($3.50), Naples ($3.43), Gainesville ($3.42).

∎ Cheapest Metro Markets – Crestview-Fort Walton Beach ($3.08), Pensacola ($3.09), Panama City ($3.13).

∎ Capital Region Market – Tallahassee ($3.37).

∎ Averages for states and metropolitan areas can be found here.

∎ Daily average prices for gas can be found at Gasprices.AAA.com.