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Gas Prices are High in Florida — What is Causing It?

Loves to blog and debate


Tags: gas prices  gasoline  florida gas  biden gas  biden prices  economics  

Loves to blog and debate

Gas Prices are High in Florida — What is Causing It? published by The 1st Amender
Writer Rating: 3.0000
Posted on 2022-03-08
Writer Description: Loves to blog and debate
This writer has written 206 articles.


As of 3/8/2022, we can see that "Today's AAA National Average" price of gas across Florida is soaring above $4 a gallon.  As people panic, write online jokes, chide political opposition, there appear to be reason after reason stoked by emotion, and far less of what is actually causing it.  This article is designed to remove ideological boundaries and say how things actually are, as opposed to protecting these ideologies.  While far drier than criticisms tossed at Democrats and Republicans, sometimes seeing it how things are can help bridge these boundaries.

Gas prices, just as any other commodity, rely on the use of supply and demand in order to create prices. This is not the actions of individual oil companies, or Joe Biden cancelling the Keystone pipeline (The Keystone pipeline Phase IV was never built while Phase 1, 2, and 3 remain operational.  Which would mean the prices back then, comparing to today, have nothing to do with the pipeline. While the pipeline would certainly reduce prices today; it certainly has nothing to do with the current prices)

Gas prices are largely fluctuated by the following factors, which would indicate the differentiation of price between counties, states, and nations:

Oil Prices are the number 1 factor in Motor Fuel Production
Source: (https://gaspricesexplained.com/#/?section=gasoline-diesel-and-crude-oil-prices)

Looking at this graph, we can see that the largest item that appears to raise the cost of gasoline prices at the pump is the raw material used to produce the gasoline — crude oil.  Prices for crude oil have been raising globally, mostly due to demand exacerbated by developing countries, marked with additional supply drop due to the war in Ukraine and Russia:
Daily Brent front-month futures contract price
Source: (https://www.eia.gov/todayinenergy/detail.php?id=51498)

The cost of crude oil can vary wildly over time and across all regions of the country.  U.S. cruide oil prices are determined by global fundamentals, which include supply and demand factors, inventory, the season, and financial market considerations. Considering we have removed Russia, a major crude oil trader globally, it doesn't surprise me the market has spoken in that the demand has maintained, or increased, and supply has decreased. This can only result in gasoline costing more at the pump.

Arm yourself with knowledge, and divorce yourself from ideology.  Look at things as the way they are — and stop thinking of things with a lens of left versus right.

   

Sources:
self-written
https://gaspricesexplained.com/#/?section=gas-prices-explained

Article Rating: 0.0000



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