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Florida gas prices jump following crude oil run-up

Staff photo by JASMINA MEYER

Some analysts blame the price spike on declining gas production and a weakening dollar.

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By RICHARD MULLINS | The Tampa Tribune

Published: October 26, 2009

TAMPA - Gas prices are rising in Florida, following the path of crude oil prices upward over the past month. Florida prices now average $2.70 per gallon of unleaded, up from $2.49 a month ago, according to AAA.

The average price of regular gasoline in the United States has jumped 17.8 cents over a two-week period to $2.66. It's the first rise in the national retail price of gas since late July.

In Tampa, the cheapest price was $2.54, according to TampaGasPrices.com, which solicits the public to send in prices they see at local stations. The average, according AAA's Daily Fuel Gauge Report, is $2.67, up 29 cents from a month ago.

Rising prices at the pump are happening despite weak consumer demand and ample supplies, AAA said. Crude oil has surged 25 percent in the last month, and posted its highest weekly closing price of the year, $80.50 per barrel, driven in part by a weaker U.S. dollar that's driving speculators into the commodities market, AAA said.

Analyst Trilby Lundberg says the average price for a gallon of mid-grade was $2.78. Premium was at $2.90. Tucson, Ariz., had the lowest price among cities surveyed at $2.24 a gallon for regular. Anchorage was the highest at $3.25.

Last year's run up to $147 per barrel crude was also due to a weak dollar, but there were other reasons for buying oil. Petroleum companies were nearing their peak production levels and traders fretted about the growing energy appetites of China and other developing countries.

This year, there is no immediate danger of an oil shortage with the U.S. and other countries mired in recession.

Information from the Associated Press was used in this story. Reporter Richard Mullins can be reached at (813) 259-7919.

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