If you've noticed a change in the price at the pump recently then you're not the only one. Gas prices have been going up and up in recent months and that's a trend that's set to continue.
Compared to last year, gas prices are up by $1 as supply chain shocks start to reverberate. The issues with supply chains were started by Covid but they have become influenced by other factors as the year has gone on.
Some of these factors include the reopening of the economy, more Americans on the road compared to last year, limited supply because of hurricanes and increased global demand.
All of which has led to a spike in prices.
Three weeks ago the price in Daytona for a gallon of gas was $3.09. Since then, the prices have moved back a touch but they still remain higher than this time last year and are unlikely to fall back anytime soon.
Patrick DeHaan, in an interview with Fox News a few weeks ago, stated that Florida is more prone to gas price increases than other states:
"We call it price cycling where prices at individual stations don't follow the national trends," he said. "A lot of stations nationally generally make a profit of 15 to 20 cents per gallon, but stations in Florida do this game where it's essentially a price war. It's largely driven by Speedway, which always wants its prices to be lower than its competitors. They'll drop prices a penny or two a day until there's no margin left then they'll restore their profit margin by suddenly raising prices significantly. Then they'll repeat the cycle."
Florida Governor Ron DeSantis waded into the row recently decrying inflation and policies from Washington as the reason for the increase in gas prices:
“It’s (inflation) being driven, I think, by a lot of the really bad policies coming out of Washington. That eats away at families’ budgets. Gas is going through the roof. I mean, it’s incredible how much gas has gone up. We should be doing the pipelines. We should be doing the stuff at ANWR and the other things so we can be energy-independent. Instead, we’re now begging OPEC to lower prices. That’s not where you want to be. Inflation needs to be dealt with. Gas prices need to be dealt with.”
Ultimately, DeSantis has little control over gas prices and his protestations won't make the issue any better. For the average Floridian, it looks like the price of gas will remain higher for the foreseeable future and could move even higher too as the months go on.
What are your thoughts on the increases in the price of gas? Do you think it's a result of inflation? Are you struggling to fill up your tank due to the increases? Leave me a comment below and let me know your thoughts.
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