Florida gas prices dip, rebound possible this week

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(The Center Square) – Florida gas prices fell last week but drivers are still paying about $17 more to fill up their tanks than this time last year, according to the latest numbers.

While last week’s 20 cent decline offers a small relief to drivers’ wallets, the state average remains above $4 per gallon – a stark contrast to the state average of $3.07 this time last year, the American Automobile Association (AAA) reports.

The state average fell from $4.43 to settle at $4.23 Sunday. However, the most expensive metro markets remain at $4.42 in West Palm Beach and Boca Raton and $4.36 in Gainesville.

Even in the least expensive metro markets like Pensacola, Panama City, Crestview, and Fort Walton Beach, gas prices remain above $4 per gallon.

"Memorial Day travelers will pay about $17 more than last year to fill an average sized tank of gas," said AAA Spokesman Mark Jenkins. "Global supply concerns regarding the conflict with Iran has kept upward pressure on fuel prices. This could continue through the summer months unless a resolution is reached."

Gas prices are also expected to rise again with the price of oil in the US increasing by $10 per barrel last week making a rebound early this week likely.

President Donald Trump has proposed suspending the federal gas tax to offer some relief, but it’s unclear how much drivers would benefit since reducing the tax could expand demand and result in slightly higher pre-tax prices, according to an analysis by the Tax Foundation.

The federal gas tax is 18.4 cents per gallon and diesel tax is 24.4 cents per gallon.

“The main driver of today’s high gas prices is global supply constraints,” wrote Alex Muresianu, senior policy analyst for The Tax Foundation. “The only solution to the problem is expanded supply. That might come in the form of a changed geopolitical situation in the Middle East (a foreign policy matter rather than an economic one), or new production coming online in the United States and elsewhere, which takes time.”