Gas prices hit 12-year low for July

The last time gas prices were this low in Central Florida in July, Jeb Bush was governor and the iPhone was still two years away.

Fuel prices continued to tumble in Metro Orlando this week, hitting $2.05 a gallon for regular unleaded as refineries continue to produce in record amounts, according to AAA’s Daily Fuel Gauge. It’s the lowest July gas price since 2005, during a time of year when prices are typically peaking.

The price at the pump is 3 cents lower than a week ago and 30 cents cheaper than a month ago. It’s even cheaper than a year ago when it was $2.15 a gallon.

At many stations, a gallon of regular unleaded is selling below $2.

“We’re looking at summerblend gasoline being cheaper than it was on New Year’s Day,” said Dan McTeague, a senior petroleum analyst with GasBuddy. “We’re living in interesting times.”

Gas prices have been steadily low this year as oil mostly stayed below $50 a barrel.

International tensions haven’t been enough to scare up prices and demand has fallen slightly from a record high a year ago, McTeague said.

The price for a barrel of oil settled at $45.30 in trading Thursday on the New York Mercantile Exchange.

Oil refineries, meanwhile, have increased output by 1.6 percent compared to a year ago, according to the U.S. Energy Information Administration.

In short, supply is strong and demand is weak.

In Central Florida, the average price is the lowest since Nov. 29.

But while November is known for low fuel prices, July usually isn’t.

“It’s definitely unusual to see gas prices so low in the summer,” said Mark Jenkins, a spokesman for AAA.

And a report this week from Wells Fargo said gas prices would likely remain below $50 a gallon for the next 12 months.

That roughly translates to gas prices below $2.50 a gallon, he said.