Gas prices rise in Palm Beach County but have small drop in state
After a sharp increase in prices just before the new year, the cost per gallon of gasoline in Florida dropped over the last week.
But in Palm Beach County, usually home to the highest gas prices in the state, the price instead went up by about four cents.
The average cost for gas across the Sunshine State on Monday was $3.26, a six-cent decline from the week before, according to the weekly briefing from AAA The Auto Club Group. But in Palm Beach County, that average hit $3.50 up from $3.46 last week and $3.41 a year ago.
Palm Beach County's average price this week is 11 cents more than the next most-expensive market, Gainesville, where a gallon averaged $3.39.
Gas prices have fluctuated in the first few weeks of 2023 but have stayed above $3 a gallon. In part, the price of crude oil impacts what consumers pay at the pump.
Market prices of oil dipped by about 15% in the first week of the year but rebounded by about 8% last week.
"Pump prices may not go much lower this week, thanks to a rebound in oil prices," said AAA spokesman Mark Jenkins in his weekly briefing. "Crude prices strengthened last week on various news reports, causing investors to grow optimistic about global fuel demand. First, reports that China is easing COVID-19 restrictions. There's also hope that the Federal Reserve could slow interest rate hikes, following reports that inflation eased in December."
Why does Palm Beach County always have the highest gas prices?
Whether gas prices in Florida rise or fall, Palm Beach County almost always has the highest prices in the state.
Why is that?
Experts at AAA Auto Club South and Gas Buddy say there are numerous reasons for the dubious distinction.
“The biggest difference-maker in Palm Beach County prices is based on the cost of living and operating a business. If it costs more to keep the lights on, then you are likely to find higher costs for consumers as well,” Jenkins said.
What other factors are to blame?
Competition or a lack of competition
Stations near low-price leaders such as Costco and Sam’s Club are likely to offer lower prices, too. Conversely, if there is no large gasoline retailer in an area, prices tend to be higher.
Price zones
A pricing practice known as zoning takes into account the number of competing stations, number of vehicles, average traffic flow, population density, income level and more. Set by the gasoline suppliers, price zones can result in varying prices for the same brand at stations a few miles apart.
Motor fuel taxes
At 39.4 cents per gallon in state and local taxes, and 18.4 cents in federal taxes, Palm Beach County drivers see 57.7 cents per gallon in taxes at the pump. But 30 other Florida counties have the same gasoline taxes, the highest allowed in Florida.
Distribution cost
Distribution costs vary depending on how far trucks have to travel from a terminal to gas stations. Palm Beach County has no gasoline terminal. Port Everglades in Broward County is South Florida’s primary 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 tend to be higher near airports and interstate on- and off-ramps and in higher-income municipalities such as Boca Raton and Jupiter.
The market
Station owners charge what the market will bear. In an affluent county, the result is higher prices. Higher-income communities also tend to have fewer gas stations, resulting in less competition. What does it boil down to? They charge more because they can.
Gas at a glance
Most expensive metro markets – West Palm Beach-Boca Raton ($3.50), Gainesville ($3.39), Miami ($3.36)
Least expensive metro markets – Crestview-Fort Walton Beach ($3.13), Panama City ($3.13), Pensacola ($3.15)
Daily gas price averages can be found at Gasprices.aaa.com
This article originally appeared on Tallahassee Democrat: Florida gas prices drop 6 cents; rise four cents in Palm Beach County
