Lazaro Aleman
ECB Publishing, Inc.
For the first time since the Great Recession of 2008, fuel prices topped $4 per gallon at the pump last week.
Experts cite the convergence of geopolitical tensions, inflation and Covid-19 for the sharp spike.
No matter the cause, however, for the average consumer it translates into more pain at the pump and belt-tightening, especially if prices continue to climb, which most expect will happen. (On Tuesday, the Biden administration banned oil products from Russia, which is expected to jack up gas prices even higher.)
In parts of California already, gas already has exceeded $5 per gallon, and it’s the general expectation that the nationwide average will be near
that or higher by Memorial Day, unless something gives before then.
Per the American Automotive Association (AAA) Florida gas prices skyrocketed to the highest levels in a decade last week, with the average prices at the pump rising about 44 cents per gallon over the previous five days.
“Unfortunately, more price hikes are on the way and drivers may soon begin to see record high prices at the pump,” said Mark Jenkins, spokesman for AAA – The Auto Club Group. “Gas prices are being dragged higher by sky-high oil prices, which are surging in response to the conflict between Russia and Ukraine.”
Sanctions and regulations against Russia has limited that country’s ability to sell its oil on the global market, thus intensifying global supply concerns in what was already a very tight market due to the pandemic, Jenkins added.
According to the AAA, the U.S. price of oil surged 26 percent last week, to a little more than $24 per barrel.
“An increase of that magnitude translates to a 60-cent increase at the pump,” Jenkins said, adding that another 10 to 15 cent hike is possible in Florida gas prices.
If that happened, Jenkins said, the state average would eventually surpass the previous all-time high, moving toward around $4.12 per gallon.
The record high price for regular unleaded gasoline in Florida was $4.08 per gallon, which was set on July 16, 2008. Already, the average price of gas in Florida exceeds that figure.
A recent survey by the AAA found that drivers were already changing their driving behavior because of the increasing prices. Of those surveyed:
· 39 percent said they were cutting down on their driving wherever possible.
· 22 percent said they were combining trips
· 27 percent said they were driving shorter distances
· 18 percent participated in fuel rewards programs
On Wednesday, March 9, the average price of unleaded gas per gallon nationally was $4.25, with individual prices ranging $5.57 at the high end, to $3.79 at the low end. In Florida on Wednesday, the average price of unleaded gas per gallon was $4.21, with individual prices ranging from $4.35 at the high end, to $4.09 at the low end.
On Wednesday in Jefferson County, the average price of unleaded gas was $4.23. It was $4.20 in Madison County, $4.19 in Taylor County, and $4.17 in Leon County.
The AAA offers the following tips for conserving fuel consumption:
· Maintain your vehicle in top condition to optimize fuel economy
· Combine errands to limit driving time
· Shop around for the best available gas prices
· Consider paying cash, as some retailers charge extra per gallon for customers who pay with a credit card
· Remove excess weight in your vehicle
Drive conservatively, as aggressive acceleration and speeding reduces fuel economy