Gas Prices Remain Low As Two Tropical Systems Target The Gulf Coast

August 24, 2020

Florida gas prices continue to drift lower, even as two tropical systems move toward the Gulf Coast. The state average price for gasoline was $2.07 per gallon, yet drivers in some Florida cities are finding prices below $2 a gallon.

The average price for a gallon of regular unleaded was $2.08 Sunday night in Escambia County. Two warehouse clubs were the lowest in the Pensacola area at $1.92, while the best price in North Escambia was $2.08 at a station on Muscogee Road in Cantonment.

Nearly half of the refining capacity in the United States is located along the Gulf of Mexico, predominantly along the Texas and Louisiana coastlines. Marco and Laura are both forecast to make landfall in Louisiana in the coming days. Nearly a dozen oil refineries near New Orleans are in the hurricane warning area.

“The potential for a price hike is always there, when a hurricane threatens the gulf coast refinery region,” said Mark Jenkins, spokesman, AAA – The Auto Club Group. “So far, oil and gasoline futures prices have remained low, likely because Marco and Laura are not forecast to reach major hurricane status. Either way, incremental increases are possible if these storms cause damage resulting in long-term impacts to oil rigs, refineries or the fuel supply chain as a whole.”

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Written by William Reynolds · Filed Under News