Pumped up gas prices? What we know about rising costs and what to expect in near term

Samantha Neely, Fort Myers News-Press
·4 min read
101

Noticing some pumped-up prices at the gas station? You aren't alone, with analysts cautioning that prices are going to rise in the coming weeks.

Drivers are seeing gas jumping by 10 cents to 20 cents in many areas over the past week, in part because of oil reaching record highs for the year and recent flooding in South Florida.

While prices are still nowhere near last summer's peak of nearly $5 per gallon, drivers are still feeling the strain of elevated gas prices, along with other rising costs.

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Here's what we know about why these prices at pumps are rising, as well as what the current prices look like locally in Southwest Florida:

What do gas prices look like throughout Collier and Lee County?

According to AAA data, the average gas price throughout Florida is $3.692 as of Wednesday while the national average is $3.684. In Lee County, the average is $3.724 and in Collier County, the average is $3.741.

Here are the current averages for metro areas in Southwest Florida:

  • Fort Myers/Cape Coral - $3.725

  • Naples - $3.741

How do these prices compare to yesterday? Last week? Last month? A year ago?

According to AAA, here's how the state's current price per gallon compares with some recent dates:

  • One day earlier: $3.618

  • One week earlier: $3.575

  • One month ago: $3.455

  • One year ago: $4.075

AAA also notes that in June of last year, they recorded the state's highest average price at $4.891.

Why are gas prices rising?

So what causes the national average for a gallon of regular unleaded gasoline to shoot up nearly 20 cents within one month? According to Patrick De Haan, head of petroleum analysis at GasBuddy, it begins with the price of the barrels.

“With oil prices touching their highest level of 2023 at nearly $83 per barrel, the national average price of gasoline has continued to inch higher, with 45 of the nation’s 50 states seeing prices rise over the last week," De Haan.

According to their own data, which includes compiling more than 11 million individual price reports covering over 150,000 gas stations across the country, the national average is up 22.1 cents from a month ago but 41.2 cents per gallon lower than a year ago. The national average price of diesel has fallen 0.3 cents in the last week and stands at $4.15 per gallon, 87.4 cents lower than one year ago.

While the rising price of oil is likely the largest factor in rising gas prices, he highlighted that seasonal impacts continue to also exert pressure on prices throughout the country over the coming weeks.

In winter, gasoline blends typically have a higher Reid vapor pressure, which means it evaporates more easily and allows gasoline to ignite more easily to start one's car in cold temperatures. The switch to the summer blend allows companies to bring in a lower volatility gasoline that is better in a warmer temperatures.

“With the Northeast making the final step in the transition to summer gasoline this week, states in that region should expect a sharp rise in gasoline prices over the next week or two. Every other region has already seen the final step in the transition occur, so while other areas will see prices continue to slowly rise, the Northeast is likely to see a pretty hefty jump of 15-40 cents per gallon soon," De Haan shared.

Will gas hit the $4 mark?

De Haan noted that there is no clear answer to whether rising prices will hit or go over the $4 mark like residents saw last year.

"Oil prices remain a wildcard, but we’re likely a few weeks away from seeing the national average peak. Whether it hits $4 per gallon or not is still perhaps a 50/50 chance,” De Hann said.

Has recent flooding in Florida contributed to rising prices?

After severe flooding plagued cities in South Florida last week, operations halted at Port Everglades, which provides about 40% of the fuel that powers the state. Several gas stations throughout southern counties were run dry while long lines wrapped around the few who did have gasoline.

As of Monday, operations at the Port Everglades are almost back to normal, according to AAA spokesman Matt Jenkins. In an article for the Palm Beach Post, Jenkins told reporters that gasoline was being brought in from Port Canaveral, Tampa, and Orlando to offset the shortage.

"The good news is that most gasoline terminals at Port Everglades are already back in service," Jenkins said Sunday. "It’s expected to be at full capacity by the end of the day, so fuel supplies in the area should get back to normal in the coming days."

This article originally appeared on Fort Myers News-Press: What we know about rising gas prices in SWFL and what's causing them