Life on Florida’s West Coast

Gas Prices, Supply and Demand

After the 2008 gas price fiasco, we started off 2009 right. Gas prices here in my part of Florida hovered right around $1.50 a gallon. The, last week they shot up 20 cents everywhere. I tried to look at the going price per barrel to gain some insight into WHY the prices went up, but I could not locate any information that made sense. I grudgingly filled up my tank and wondered what might happen next week.

AAA Auto Club South keeps tabs on gas prices in Florida, Georgia and Tennessee and says the cost per gallon of regular gasoline did indeed rise about 20 cents all around our region this past week.

Here’s the part that might make you angry. Those gas prices went up, but the closing cost for a barrel of oil actually went DOWN last week, to $5.51 less than the prior week. Oil closed on Friday at $40.83 a barrel – down about $9 from, earlier in the week.

AAA is saying that the lower oil prices might finally have an effect on gas prices this coming week.

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