Florida gas prices continue to fall; hit lowest levels since February

Florida gas prices dipped to their lowest level since February with a 9-cent downturn this week.

The state's average price per gallon is $3.45, according to the weekly briefing from AAA — The Auto Club Group.

Palm Beach County, usually home to the priciest gas in the state, still has the highest prices in Florida, at $3.66 on average for a gallon of regular gas. But even Palm Beach County saw a big dip — a 6-cent decrease in a week.

And this week's prices are 23 cents less per gallon than a month ago.

Read more: Why does Palm Beach County always have the highest gas prices in Florida?

Subscriber Exclusive: South Florida rents are sky high but the re-upping leases may not be as shocking this year

Business news: Employers finding new ways to find, retain workers across Palm Beach County industries

The drop is the latest in a two-week decline in the Sunshine State  that has seen total declines reach as much as 17 cents. Drivers are paying roughly $1.44 less per gallon than they were in mid-June when prices hit their highest of the year.

AAA officials are predicting prices will continue to drop throughout the week.

"The oil market finished flat last week, which should enable the state average to continue moving lower," said AAA spokesman Mark Jenkins. “Unless fundamentals shift, Florida's average gas price should fall into the $3.30s this week."

The national average price for a gallon of gas — now at $3.71 — fell 7 cents in the past week. It's a level not seen since the beginning of March.

“Less expensive oil usually leads to less expensive gas for drivers,” said Andrew Gross, another AAA spokesperson. “This trend has helped pump prices fall steadily for three straight months and, with fall approaching, more markets could soon see prices below $3 per gallon.”

Today’s national average of $3.71 is 26 cents less than a month ago but 54 cents more than a year ago.

Despite inflation at a high, consumers have not cut back on spending

While gas prices are dipping, inflation still hoversat a 40-year high.

But USA Today reports that consumers haven't cut back on spending.

They spent 13% more in August compared with last year, according to a Bank of America Institute analysis using data from 67 million consumer and small business accounts. And people are finally starting to spend more on discretionary goods and services after months of pulling back.

This comes as average gas prices nationally fell 20% in August from their record high of $5.02 per regular gallon in June, according to AAA.

But whatever savings they got from falling gas prices are essentially being erased by the rising cost of other necessities, like child care.

The number of customers making child care payments is nearly at its pre-pandemic level.

The authors of the Bank of America analysis found that the rise in child care spending has a "very strong correlation" with the labor force participation rate for women ages 25 to 54 years old, which has also risen. The labor force participation rate captures the share of people either working or actively searching for jobs. Last month, it hit 77.2%, topping its pre-pandemic level.

For much of the pandemic, when day care and child care centers were forced to close, women disproportionately took on child care responsibilities instead of working full time. But with more child care centers now open and many schools back to in-person learning, more women are returning to work or applying for jobs.

But the increased demand for child care is coming with a heftier price tag – households are spending nearly 10% more for child care than they did last year, according to data from Bank of America.

Then there's the cost of utilities.

Bank of America customers paid 16% more on average for utilities last month compared with a year ago. That's roughly in line with Consumer Price Index figures.

The cost of utilities, including electricity, came as much of the country experienced heat waves and/or higher than average temperatures this summer.

Gas at a glance

• The Treasure Coast is at $3.47 per gallon, also a 6-cent drop in a week.

• Other most expensive metro markets after Palm Beach County: Tallahassee ($3.58), Naples ($3.53).

• Least expensive metro markets: Crestview-Fort Walton Beach ($3.25), Pensacola ($3.27), Panama City ($3.33).

This article originally appeared on Palm Beach Post: Florida gas prices: Fuel cost in state, Palm Beach County continues fall