Florida gas prices reach 20-month high

Relief on the way, AAA says

Average gas prices in Florida reached a 20-month high on Friday, hitting $2.47 a gallon before receding by fractions of a penny over the weekend, travel club AAA reported.

But relief is on the way as lower crude oil prices should send pump prices in the opposite direction in the coming weeks, AAA said.

In a rare occurrence, the statewide average price has edged just below averages in the tricounty region. Usually gas costs a dime or so more on average in South Florida.

The average per-gallon price for unleaded gas in Florida was $2.46 on Monday, just two cents below the average price of $2.48 in Broward County, a penny below Miami-Dade County’s average of $2.47 and seven cents below Palm Beach County’s average of $2.53.

South Florida motorists typically pay significantly more at the pump on average than drivers in Jacksonville or Orlando. That’s not true this week.

Much of the reason for the usual disparity is that Broward, Palm Beach and Miami-Dade counties are among 22 of 67 in the state imposing the maximum allowable local option gas tax — 36.7 cents for every gallon sold.

Prices also tend to be higher in South Florida because it’s more expensive to run a business here than in other parts of the state, said Ned Bowman, executive director of the Florida Petroleum Marketers and Convenience Store Association.

“Property taxes are higher, and so are labor costs,” Bowman said.

Just a month ago, on March 19, AAA reported a gallon of unleaded gas cost an average $2.26 in Florida and at least 15 cents more in South Florida: $2.41 in Broward and Miami-Dade counties, and $2.48 in Palm Beach County.

Why has the gap narrowed? AAA spokesman Mark Jenkins said he’s not sure.

“I‘m not really seeing any good explanation for that,” he said. “We saw prices picking up in Jacksonville at a time we’re really not seeing any movement in Fort Lauderdale at all. At this point I’d chalk it up to luck for those in South Florida.”

Even better news is AAA foresees prices heading down in coming weeks thanks to last week’s drop in crude oil prices back below $50 a barrel. That led to a 10 cent drop in wholesale gasoline prices, which should start being reflected in pump prices in a week or two, Jenkins said.

The drop in oil prices comes amid pessimism by analysts that OPEC will extend its November agreement to support higher prices with production cuts. They’re worried about losing market share to United States-based shale oil producers, which have helped push domestic oil inventories to record levels.

A barrel of WTI crude oil was trading at $49.34 in midday trading on the New York Mercantile Exchange on Monday — down from more than $53 on April 18.

If oil stays below $50 in the coming weeks, “there’s a really good chance we could see gas back down to $2.25 a gallon,” Jenkins said.

While we are waiting, bargains are available in the area for those with the time and inclination to look.

According to the pricecomparison website GasBuddy.com, the lowest pergallon pump price in Palm Beach County that does not require a wholesale club membership was $2.28 at J&A on Military Trail at Melaleuca Lane in Lake Worth.

In Broward County, competition between a 7-Eleven and a Valero along Northeast 26th Street east of Wilton Drive had both retailers offering gas at $2.19 a gallon.

The lowest price in Miami-Dade was $2.29 at U Gas on Northeast 6th Avenue and Northeast 154th St. in Miami.