ST. PETERSBURG, Fla. — As a record number of Americans were set to take a road trip this 4th of July weekend, gas prices fell for the third consecutive week, according to a press release from AAA, the auto club group.
Gas prices have been at a record high across the nation — topping $5 for the first time ever in June. While Florida didn't reach $5, it still experienced record high prices falling just under that number at $4.89 per gallon on June 13.
These steep prices had a broad impact, forcing local businesses to increase pricing and Floridians to rethink holiday travels.
However, Florida residents saw some relief this past holiday weekend with Florida's average gas price dropping nearly 10 cents since last week and a total of 35 cents over the past three weeks.
The average price for gas in Florida was $4.54 per gallon on Tuesday. The national average was at $4.80.
"Gas prices are being dragged lower by falling crude oil prices, which suffered steep losses Tuesday, on worries of a global economic slowdown," Mark Jenkins, AAA spokesman said in a statement.
The price for crude oil in the U.S. plummeted Tuesday, dropping below $100 a barrel for the first time in eight weeks. The closing price on Tuesday was nearly $9 less than the week before at $99.50 per barrel. This is also the lowest daily settlement since April 25.
While a 35-cent decline may not seem like a lot, it adds up quickly at the pump, and there may be hope for further price declines.
"If these futures price drops hold, drivers could see Florida gas prices drift back below $4.10 per gallon," Jenkins said.
However, he warned that the fuel market is still extremely volatile, and oil prices have rebounded many times already in the last few months.
Americans could see further relief as President Joe Biden called on Congress in June to suspend federal gasoline and diesel taxes for three months.
Currently, there is an 18.4 cents-a-gallon federal tax on gas and a 24.4 cents-a-gallon federal tax on diesel fuel. If gas savings were fully passed to consumers, Americans could save about 3.6% at the pump.
However, members of Congress, as well as economists, are skeptical of a gas tax holiday, and Biden's push faces many bumps in the road.
Florida Gov. Ron DeSantis approved a one-month fuel tax holiday for the entire month of October, ahead of the election the following month. Floridians could save $200 million by lowering the price of gas by 25.3 cents per gallon.
In the meantime, AAA offered several ways to save on gas:
- Limit driving time by combining errands.
- Look and shop around for the best gas prices locally.
- Pay with cash instead of card as some retailers charge extra per gallon for card payments.
- Keep your vehicle light as every 100 pounds taken out improves the fuel economy by 1-2 percent.
- Avoid aggressive acceleration and speeding as they reduce the fuel economy.