Why did gasoline in Florida double in just one year?

MIAMIDIARIO

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Cuban Newspaper

The state of Florida has seen gas prices spike in recent weeks, reaching their highest level in nearly seven years, according to the American Automobile Association.

The average price of gasoline in the Sunshine State is $3.24, although in some areas it has reached $3.50, double what it was just last year and the highest price since 2014, reported the Cuban Newspaper.

The cost of filling a car's tank is about $14 more than a year ago, a considerable sum considering the short time frame.

However, this increase is nowhere near the highest ever for gasoline, which reached $4.11 per gallon on July 17, 2008, according to records from the Federation of Motor Clubs.

Economics and finance expert Mickey Cargile told First Coast News that at the start of the COVID-19 pandemic, oil wells shut down and investment in fuel production stopped.

This situation led to the use of the “excess” of stocks in the last 18 months, but put the regular supply of this resource in trouble.

“Now, there is a shortage of oil, as the world economy has recovered since the close of COVID-19. The main reason for this is that the recovery has really been a setback”, Cargile explained.

According to the expert, crude oil is currently trading at almost $83 a barrel, 98% more expensive than last year, which is forcing gasoline prices to rise.

“I hope the price continues to go up a bit from here, but you have seen most of the increase. I don't think the increase will be that big next year. Gasoline prices went up 58% in the last year, you know, that's really been a shock to our checkbooks", he added.

As an approximation, Cargile predicts that oil supply and demand will equalize in the spring of 2022, thus starting to stabilize prices.

In the meantime, increases can still be expected, although less dramatic than those that occurred in the last year, when fuel doubled in price.

Cargile advises consumers to budget between 3.00 and 3.50 per gallon for the next several months.

Article Original From MiamiDiario

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