Florida Gas Prices Soar Amid Iran War

Gas prices are on the rise across the United States over the past couple weeks, and Florida is no exception. According to one report, Florida experienced the second highest jump in gas prices over a period from January 20 to March 13. The current rate of increase in gas prices is the highest Florida has in four years, according to an analysis by AAA spokesperson Mark Jenkins. As of Sunday the average cost of a gallon of gas was $3.72 per gallon, a statewide high since August 2023. Sunday’s average gas price is 27 cents more expensive than one week ago, 84 cents more than one month ago, and 61 cents more than this time last year, AAA’s report says. “Even though fuel supplies in the United States remain steady and refineries continue to operate, higher crude and gasoline futures are lifting prices at the pump,” Jenkins said. “Florida drivers may see another round of price hikes in the coming days as stations adjust to rising wholesale costs. How high prices ultimately go, will depend on how long this conflict continues and whether there are further effects on global fuel supplies.” What’s Causing Price Increases? As with any spike in gas prices, participants in political discourse are quick to point fingers. The last rapid increase in October 2023 was widely attributed to the invasion of Ukraine by Russia, and instability overseas appears to be a recurring theme in this case as well. Since the United States launched airstrikes against Iran on February 28, the global fuel market has entered a period of instability that’s appearing at the pumps. Concerns over disruptions in international oil supply have led to a drop in confidence over sustained demand, AAA says. This time around, the cost of crude oil isn’t correlating to the price of gas. Crude oil is actually falling according to one report by CBS News, while the cost of gas continues to surge all the same. Could Increasing Prices Help the Economy? On Thursday President Donald Trump suggested on his Truth Social account that rising gas prices could be a net gain for the United States. “The United States is the largest Oil Producer in the World, by far, so when oil prices go up, we make a lot of money,” he said. During last month’s State of the Union address, Trump said that falling gas prices were an indicator of a strengthening economy. President Trump is correct that the United States leads the world in petroleum extraction. This has been the case each year since 2018. Looking solely at crude oil, however, the United States imports more than it produces. According to the Poynter Institute, even if this weren’t the case it wouldn’t shield Americans from higher gas prices in international conflicts such as the Iran war. With that being said, is there any merit to Trump’s claim that higher oil prices could help the United States economy? The answer may depend on how quickly prices stabilize, some experts say. An assessment from Oxford Economics says that if the price of oil reaches $140 per barrel and stays there for around two months, the effects could be severe. At this point several global economies could enter a recession, the United States included. As car-dependent as the United States is, rising gas prices appear likely to hit many Americans’ wallets in a way they can’t avoid.