Enjoy the dip: Gas prices dropped, but be wary of spring rebound

© John McCall/South Florida Sun-Sentinel/TNS Gas prices fell 9 cents a gallon over the past week in Florida thanks to plummeting crude oil prices. The average price in Florida on Monday, Feb. 6, 2023 was $3.49 but savvy motorists always know where to find it cheaper. At this RaceTrac station on State Road 7 in Lauderdale Lakes, a man buys gas for $3.29 a gallon.

Gas prices dropped nine cents a gallon in Florida over the past week but could be heading higher after crude oil futures staged a comeback on Tuesday.

The latest price drop followed a 32-cent hike over the last two weeks of January.

The average price for a gallon of unleaded regular in Florida was $3.47 on Tuesday, a penny higher than the national average of $3.46, according to travel club AAA.

On Monday, AAA spokesman Mark Jenkins reported in the club’s weekly Gas Price Update that oil prices had fallen 10% over the past two weeks and wholesale gasoline prices had fallen almost 40 cents.

But on Tuesday, the price of a barrel of West Texas International crude oil surged nearly $5 to $77.32 after trading at about $72.50 the day before.

Jenkins on Monday attributed the latest price decline to a combination of domestic and global economic factors, including the European Union’s decision to impose a $100 barrel cap on Russian oil. Also, last week’s report showing continuing growth of the United States job market raised concerns that the Federal Reserve will continue to raise interest rates, potentially reducing fuel demand.

A day later, traders reacted bullishly to Fed Chairman Jerome Powell’s suggestion that further interest rate hikes would take “a significant amount of time.” In addition, Saudi Arabia raised its price for Asian buyers for the first time in six months, and analysts predicted stronger demand from China as the nation continues to emerge from its yearslong COVID-19 shutdown.

Supply concerns played a role as well. The earthquake in Turkey forced the closure of a 1-million-barrel-a-day oil export terminal. It’s expected to reopen Wednesday.

Patrick De Haan, head of petroleum analysis at GasBuddy.com, said motorists should enjoy the gas-price dip while they can.

“It’s not unusual to see prices falling in February, which tends to be the month with some of the lowest gasoline prices of the year thanks to seasonally weak demand,” De Haan wrote in his weekly blog. Howevr, “high levels of coming [gas refinery] maintenance and the eventual transition to summer gasoline could lead today’s declines to reverse down the road.”

In addition, prices in Florida typically rise in March as visitors crowd the state for spring vacations.

In South Florida on Tuesday, per-gallon gas prices averaged $3.55 in Broward County, $3.68 in Palm Beach County and $3.53 in Miami-Dade County.

Of course, savvy consumers can save money by knowing where to find the most competitive-priced gas stations.

According to GasBuddy’s Gas Price Map, the lowest price reported on Tuesday in Broward County was $3.23 at Cumberland Farms, 301 E. Sunrise Blvd., Fort Lauderdale. Next was $3.27 at Murphy Express, 5480 N. State Road 7, North Lauderdale; and $3.29 at RaceTrac, 4697 N. State Road 7, Lauderdale Lakes.

In Palm Beach County, motorists could fill up for $2.99 a gallon at an Orion station, 3985 10th Ave. N. in Lake Worth. A Chevron station at 10041 Enterprise Center Blvd. in Boynton Beach was selling for $3.10 a gallon.

In Miami-Dade County, a Mobile station at 8701 NW 186th St. in Hialeah was selling gas for $3.27 aa gallon.

Ron Hurtibise covers business and consumer issues for the South Florida Sun Sentinel. He can be reached by phone at 954-356-4071, on Twitter @ronhurtibise or by email at rhurtibise@sunsentinel.com.

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