Florida Could See 30 Cents per Gallon Jump in Gas Prices by Summer — A Side-Effect of the Russia-Ukraine Conflict
Oil prices keep rising, forcing up gas prices too
As the Russia-Ukraine conflict continues, its effects upon global oil prices and other serious side-effects are now emerging. One of these is that the price of gasoline in Florida and across the USA could continue to rise to levels not seen in recent years.
Only last month, the average price of gasoline neared $3.50 per gallon — a level not seen since 2014.
Since the Russia-Ukraine conflict began, the prices of oil has continued to soar, occasionally reaching a price in excess of $100 per barrel. What’s crucial now is whether the price settles above $100 or not.
Price rises are dependent on the price of oil, but also other factors like the sanctions being applied against Russia. The effective banning of Russian banks from using the SWIFT network for cross-border financial transactions could further hinder the buying and selling of oil around the world.
Price increases between 15 and 30 cents per gallon?
According to Mark Jenkins, a spokesperson from the American Automobile Association, the scale of price increases depends on what happens to oil prices in the longer term:
“Unless oil prices reverse course, the pain at the pump is about to get even worse for Floridians… If oil lands at $95 a barrel for a sustained period of time, drivers could expect to see a 15 cent jump at the pump. If US oil reaches $100 a barrel, the total increase would be more like 25–30 cents per gallon.”
Rising oil prices and record profits
In November last year, President Biden attempted tackle the issue of oil shortages that were at that point driving up prices. He announced the release of 50 million barrels of oil from the US strategic petroleum reserve. The move was coordinated with various other nations, and while intended to reduce pressure on gas prices, the markets didn’t react as expected.
The price of oil actually increased following the announcement and has continued to do so since the war started. Over the last 12-months the price has continued to increase steadily too from around $60 per barrel a year ago, to around $90 per barrel in February, and prices right now in excess of $100 per barrel.
Meanwhile, the world’s leading oil companies are reporting record results. In February, oil giant BP reported the highest levels of profit in 8-years — $12.8 billion net profit in 2021.
The effects of the conflict on the price of gasoline in Florida are just one concerning impact of the conflict of course. As summer approaches, when demand for gasoline is typically higher it is likely that the only way is up for gas prices in the state.
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