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AAA says Gas Prices suddenly jump in the South

‘Colin’ could impact gas prices in Florida

AAATampa, FL – Motorists in Georgia and Tennessee saw gas prices increase last week, but not by nearly as much as those in Florida. Since last Sunday, state averages rose 1-cent in Georgia, 4 cents in Tennessee, and 10 cents in Florida.

“Minimal increases at the pump were understandable, because of increased holiday demand and delayed reaction to rising crude prices, but the dramatic increases seen in Florida came a surprise,” said Mark Jenkins, spokesman, AAA – The Auto Club Group.

2016 - June Weekly Fuel Price Averages

“Basic fundamentals didn’t change. There have been no reports of supply shortages, and oil and wholesale prices held relatively steady last week. When spikes like this happen, gasoline retailers are often the culprit. All it takes is one company to raise prices in effort to increase profits, then other retailers join in, causing a domino effect of rising prices.”

“Gasoline retailers may be seeing the potential to profit as Americans are driving at record levels. The current break-even point is around $2.07-$2.10 per gallon, and prices are well above that. Eventually, some gas stations will reduce prices, in effort to compete with their neighbors, and the domino effect will reverse.”

Crude oil held steady last week. The weekly average price of WTI (US Benchmark) was $48.98. While this was only a 4 cent increase from the week before, this is the highest weekly average price for WTI since July 24, 2015.

Despite recent upward movement, seasonal gas prices remain well below those seen in recent years.  The average price in Florida of $2.35 is 36 cents less than this time last year, and $1.24 less than two years ago. In Georgia, the state average price of $2.28 is 41 cents less than a year ago, and $1.30 less than this time two two years ago. The Tennessee average of $2.20 is 32 cents less than this time last year, and $1.24 less than last year.

“Florida gas prices have the potential to rise this week depending on the impact of the tropical system moving across the Gulf of Mexico,” said Jenkins. “Florida gasoline is predominantly imported by tanker ships from refineries in Louisiana and Texas. If the storm leads to fuel shipment delays, prices at the pump could increase.”

The Atlantic Hurricane Season will be a wildcard for gas prices in the coming months. As the 2016 Atlantic Hurricane Season gets underway, attention will be focused on the Gulf Coast region because it is home to over 45 percent of the U.S.’s total petroleum refining capacity. Should any severe storms or hurricanes reach landfall, production, refining and distribution could be impacted. Historically we have seen this lead to spikes in the price at the pump nationwide.

Current and Past Price Averages

Regular Unleaded Gasoline

Sunday Saturday Week Ago Month Ago One Year Ago Two Years Ago
National $2.357 $2.354 $2.322 $2.223 $2.758 $3.660
Florida $2.346 $2.345 $2.252 $2.218 $2.712 $3.591
Georgia $2.275 $2.274 $2.266 $2.195 $2.685 $3.575
Tennessee $2.200 $2.195 $2.158 $2.081 $2.517 $3.436
Click here to view current gasoline price averages

 

AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 120,000 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.

About The Auto Club Group

The Auto Club Group (ACG) is the second largest AAA club in North America.  ACG and its affiliates provide membership, travel, insurance and financial services offerings to over 9 million members across eleven states and two U.S. territories including Florida, Georgia, Iowa, Michigan, Nebraska, North Dakota, Tennessee, Wisconsin, Puerto Rico and the U.S. Virgin Islands; most of Illinois and Minnesota; and a portion of Indiana.

ACG belongs to the national AAA federation with more than 56 million members in the United States and Canada and whose mission includes protecting and advancing freedom of mobility and improving traffic safety.

 

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