The price of oil has dropped, but will it go up again?
After many months of the price of gasoline steadily increasing, motorists in Florida are now seeing the price come down once again. On July 8 the average price of a gallon of regular unleaded in Florida was $4.45 according to the American Automobile Association (AAA). This is compared to an average of $4.60 a week ago and $4.77 a month ago.
While the savings are welcome, it's still a long way from the $3.01 that Floridians were used to paying just 12 months ago.
Oil drops below $100 per barrel
Prices have actually been dropping for a couple of weeks now, but it hasn't stopped motorists from feeling the pain at the pumps. And there's still uncertainty over the longer-term availability of oil and hence the price of gas in future.
The price of oil has dropped to around $100 per barrel for the first time in months, and this has influenced the cost of gasoline.
The price of oil has dropped to $100 per barrel as recently as May 2022 before going up to $120 again, and it has to be assumed that it could again see that same sort of increase in future, pushing the price of gas up again.
Meanwhile, Governor DeSantis has promised a sales tax holiday on gasoline in October - shortly before the gubernatorial election. Many will be wondering if he might bring this in sooner, just as Governor Kemp has done in neighboring Georgia.
This seems like a more feasible solution to the issue, than that presented by President Biden who Tweeted this week, appealing to gas station owners to drop their prices to help out the American public:
As far back as March 2022, when the price of gas had reached $3.62 in the state of Florida, motorists were already reporting that they would have to change their behavior, making only essential journeys and driving slower to make fuel go further.
According to a survey by the AAA, motorists reported a number of fuel-saving strategies:
- 39% of motorists said they would be driving less often
- 27% would drive shorter distances
- 22% would combine trips and errands
- 18% would take part in fuel rewards programs
Now, when the price of a gallon of a gas is still almost a dollar higher, many motorists will still be employing the same tactics.
Considering that a future increase in price cannot be ruled out as yet, it would seem sensible for Florida's motorists to continue to try and use as little fuel as possible and to fill their vehicles while prices are more reasonable.
Have you had to change your driving behaviors as a result of the increased cost of fuel? What's the most outrageously high price you've seen at the pumps? Let me know in the comments section below.