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Florida gas prices drop nearly 40 cents in a month
Florida drivers are getting some relief at the gas pump as prices have dropped nearly 40 cents per gallon over the past month, according to AAA.
ORLANDO, Fla. - Florida drivers are seeing some relief at the pump as gas prices continue to decline across the state. Seasonal trends and optimism surrounding a possible resolution to the conflict with Iran are among the factors contributing to the drop.
What's behind the decline?
Big picture view:
AAA reported Florida's average gasoline price at $3.79 per gallon Monday, the lowest since July. Prices have fallen about 40 cents since reaching $4.23 on Oct. 15.
The statewide average was $3.86 a week earlier. Despite the recent decline, prices remain the highest ever recorded for this time of year.
Seasonal declines in gasoline demand and falling oil prices are contributing to the lower prices.
Patrick De Haan, head of petroleum analysis at GasBuddy, said the decline is primarily seasonal, with additional pressure on oil prices coming from optimism about a possible agreement with Iran.
Lower oil and gasoline futures can also take time to affect what drivers pay at the pump.
Local perspective:
Gas prices vary significantly across Florida, with some areas seeing considerably lower averages than others.
Escambia County had one of the state's lowest averages at $3.45 per gallon Monday. Lower prices were also reported in rural areas west of Jacksonville and along the Space Coast.
Monroe County had the highest average at $4.10 per gallon. Other higher-priced areas included parts of South Florida, the Big Bend and counties surrounding Tallahassee.
Diesel averaged $5.89 per gallon statewide, down 9 cents from the previous week.
‘Meaningful relief at the pump’
What they're saying:
AAA spokesman Mark Jenkins described the recent price decline as encouraging for motorists, while cautioning that additional savings depend on market conditions.
"Florida drivers are finally seeing some meaningful relief at the pump, and there could be more on the way," Jenkins said in a statement.
Jenkins added that oil and gasoline futures dropped sharply the previous week, but those lower costs can take time to move through the fuel supply chain.
"If the market remains favorable, pump prices could continue moving lower," he said.
What's next:
Drivers could see additional price reductions if oil markets remain favorable and lower wholesale fuel costs continue reaching gas stations.
However, future prices will depend on seasonal demand, crude oil costs and developments affecting global oil markets.
The Source: This story was written based on information shared by AAA spokesman Mark Jenkins, and Patrick De Haan, head of petroleum analysis at GasBuddy.