Florida Begins to See Falling Gasoline Prices

At last, drivers are seeing some positive news at gasoline stations after watching a steady rise in pump prices over the last three months.

Florida’s gasoline prices fell seven cents just last week. Its current gasoline price average is $3.73 per gallon. According to the report of the AAA, that is the first major fall in the price of gas within a 12-week period.

The gas prices today are starting to drop since the supplies of crude in the United States are high and demand is trending downward.

August was an extremely unusual month since gasoline demand fell to its lowest rate in a 15-year period, said Brenda Smith of AAA. Moreover, the direction of the current gasoline prices is not clear.  Many hope that the drop in prices at the pump will go on as the holidays are coming. However, everyone just needs to be cautious since a single factor can cause gas prices today to move up.

Gasoline prices usually fall after Labor Day. However, there is still plenty of uncertainty coming from the Middle East that may lead to volatility. AAA does not really know how long the drop in the current gasoline prices will continue. What is certain right now is that gasoline prices have increased this year and they are still higher compared to their levels in the past year, even if they have shed off almost five cents per gallon.

The average gasoline price during the same period last year was $3.46 per gallon.

By: Chris Termeer

Chris Termeer

Chris Termeer is an oil and gas consultant, industry commentator and analyst. His book, Fundamentals of Investing in Oil and Gas provides a comprehensive overview of all aspects of the oil and gas industry, including exploration, drilling, production, storage, transportation and refining, to name but a few.

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