MIAMI (CBSMiami) – No, it is not a dream. So, stop pinching yourself. Prices at your local gas pump are down and could even sink to below $2 per gallon in some markets, according to the American Automobile Association (AAA).
So, what is causing the sudden drop in price? Crude and gasoline futures prices were sent into a tail-spin overnight when crude, which traded for $53 per barrel just a couple of weeks ago, started trading for $33 per barrel.
Officials point to coronavirus concerns as the major reason for lower global demand for jet fuel and gasoline.
By late Sunday night, Saudi Arabia, the world’s top exporter, launched a price war with Russia. It slashed prices by between $4-$7 a barrel. The kingdom, according to sources, was also planning on increasing production to over 10 million barrels a day.
“At the rate fuel prices are falling on the stock market, Florida drivers could easily begin seeing sub-$2 gasoline this week,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “The only potential upward pressure on pump prices is spring maintenance season. If the state average eventually drops below $2 per gallon, it would be the first time in four years. How long this holds or how low prices go will rely on where stock market prices go from here.”
Florida’s average of $2.28 per gallon for regular gasoline is 7 cents less than a week ago, AAA officials said.
AAA says Florida drivers are currently paying 19 cents per gallon less than this time last year.