AAA: Pump prices still plunging; Florida gas prices down 56 cents

OPEC and allies finalize record production cut.

By AAA

The plunge at the pump continued last week, with Florida gas prices falling another 6 cents. How much lower gas prices go will depend on how the market responds to a historic deal made by the Organization of the Petroleum Exporting Countries (OPEC), a group consisting of 14 of the world's major oil-exporting nations, and its oil producing allies over the weekend.

On Sunday, OPEC and its allies agreed to cut oil production by 9.7 million barrels per day - the single largest output cut in history. This effectively ends a price war that broke out between Saudi Arabia and Russia, which caused an overnight 25% reduction in oil prices last month. From there, the downward trend continued as the effects of the coronavirus impacted the global economy and forced Americans to stay off the road.

In total, oil prices are down 56 percent since February 21. During that time, the price of crude plummeted from $53 per barrel to $23/b. Florida gas prices also dropped 56 cents. This deal is an attempt to help eliminate supply surpluses and strengthen the price of crude.

"The OPEC deal should not cause gas prices to suddenly spike, but it will affect how low they can go," said Mark Jenkins, spokesman, AAA - The Auto Club Group. "Wholesale gas prices suggest the state average could eventually reach $1.50 or below, but that won't happen if oil prices gain upward momentum."

In Florida alone, gasoline demand is down as much as 50 percent in large cities, as residents self-isolate at home. The longer demand is down, the more crude and gasoline supplies will build; and it will take some time for drivers to work through all that, once the stay-at-home orders are lifted. As of this writing, the US benchmark for oil prices increased by more than $1.50 per barrel in overnight trading.

Florida Gas Price Summary

91% of Florida gas stations have pump prices below $2 a gallon.

The state average of $1.85 per gallon is 6 cents less than a week ago, and 95 cents less than last year.

A full tank of gas now costs $27.75. Last year, drivers paid $42 for a full tank.

View state and local gas prices

Regional Prices

Most expensive metro markets – Gainesville ($2.05), West Palm Beach ($2.02), Miami ($1.97)

Least expensive metro markets – Jacksonville ($1.72), Panama City ($1.73), Punta Gorda ($1.74)

Find Florida Gas Prices

Daily gas price averages can be found at Gasprices.aaa.com

State and metro averages can be found here

Gas Price Survey Methodology

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.