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Gasoline prices in Florida on a downward trend

story June 3, 2024
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The Palm Beach Post
Palm Beach Post – Press Release

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According to AAA-The Auto Club Group, gasoline prices in Florida have been steadily declining.

Over the past ten days, the national average has fallen by 11 cents, reaching $3.45 per gallon on Sunday.

For comparison, the national average is $3.53.

In Palm Beach County, which typically has the highest gas prices in the state, a gallon of regular gasoline costs an average of $3.63, down 17 cents from a month ago ($3.80) but slightly more than a year ago ($3.58).

“While gasoline prices typically fluctuate during the summer months, recent futures prices suggest the national average could decline this week,” said Mark Jenkins, spokesman for AAA-The Auto Club Group.

The US price of crude oil has fallen 4 percent over the past two weeks and gas futures have lost 16 cents over the same period.

The second most expensive gasoline in Florida was in the Naples area ($3.55), followed by the Fort Lauderdale area ($3.51).

Gasoline is cheapest in the Crestview-Fort Walton Beach ($3.16), Panama City ($3.18) and Pensacola ($3.21) areas.

If you're planning on taking a road trip outside of Florida anytime soon, keep in mind that aside from Hawaii and Alaska, gas is most expensive in much of the West Coast, as well as Illinois ($3.91) and Pennsylvania ($3.73).

Why is gasoline in Palm Beach County consistently the most expensive in the state?

Regardless of whether gas prices in Florida are rising or falling, prices in Palm Beach County are almost always the highest in the state.

Why this?

Experts from AAA Auto Club South and Gas Buddy say there are numerous reasons for the dubious distinction.

According to AAA, the biggest differences are the cost of living and operating costs. But there are other factors that account for this as well. Here they are:

Competition or lack of competition

Gas stations near discount retailers like Costco and Sam's Club are also likely to offer lower prices. Conversely, if there is no major gas station operator in an area, prices are usually higher.

Price zones

A pricing system called zoning takes into account the number of competing gas stations, the number of vehicles, average traffic flow, population density, income levels and more. Price zones set by gasoline suppliers can result in different prices for the same brand at gas stations several kilometers apart.

Fuel tax rates

At 39.4 cents per gallon in state and local taxes plus 18.4 cents in federal taxes, that comes to 57.7 cents per gallon in Palm Beach County. But 30 other Florida counties have the same gasoline taxes, the highest in Florida.

Shipping

These vary depending on how far the trucks have to travel from a terminal to a gas station. Palm Beach County does not have a gas station terminal. Port Everglades in Broward County is South Florida's main storage and distribution center for refined petroleum products, and all of Palm Beach County's gasoline comes from there.

Property taxes, insurance and leasing costs

These rates tend to be higher near airports and freeway on- and off-ramps, as well as in higher-income communities such as Boca Raton and Jupiter.

The market

Gas station owners charge what the market will bear. In a wealthy county, that means prices are higher. Higher income communities also tend to have fewer gas stations, which means less competition. What it boils down to? They charge more because they can.

Breaking and trending news reporter Elena Barrera can be reached at [email protected]. Follow her on X: @elenabarreraaa.

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