Florida gas prices dropping, may not hit $5 per gallon after all

As the Fourth of July holiday weekend looms, Florida drivers appear to be getting a bit of relief at the gas station.

Gas prices in Florida have fallen 7 cents per gallon in the past week, according to AAA The Auto Club Group, hitting $4.82 on average on Sunday, down from an all-time high of $4.89 the week before. Prices were slightly lower in Tampa Bay, dropping from $4.90 per gallon a week ago to $4.80 on Monday morning.

The drops reflect a similar change nationwide. Gas has dropped back below $5 per gallon nationally, as the Federal Reserve’s latest interest rate increase has diminished demand by stoking fears of a recession, said AAA spokesperson Mark Jenkins. Reports that the Biden administration may tighten limits on petroleum exports — which had driven up prices to international buyers — may also be keeping prices in check. All of this drove U.S. oil prices down 9 percent in the last week.

For Florida drivers, the good news in the short term is that the average statewide price per gallon may not hit $5 anytime soon, as was predicted a couple of weeks ago.

“If this downward trend holds, gas price drops could accelerate, moving the state average back around $4.50 per gallon,” Jenkins said in a statement. “But this fuel market remains extremely unstable, and things can change very quickly. It’s looking less likely that the state average will surpass $5 a gallon, but the driving season is young.”

The good news is all relative. Gas prices in Florida are still up from $4.50 per gallon a month ago and $2.94 per gallon a year ago. And across the nation, diesel prices on Sunday hit an all-time high of nearly $5.82 per gallon.