Tired of high gas prices after back-to-back hurricanes? Here’s why costs are ‘poised to plummet’

The widespread gasoline shortages caused by hurricanes Harvey and Irma that hampered Florida caused prices to hit a three-year high locally and across the Sunshine State in mid-September.

Now, with availability up again, if only prices would start to come down – and come down fast.

Motorists are seeing signs of falling costs, with Monday marking the 11th straight day prices have declined in Florida, and that drop is expected to soon pick up pace.

With the storms long gone and supply having returned to normal levels, prices are on a steep slide and “poised to plummet” up to 30 cents in the coming weeks, AAA spokesman Mark Jenkins said.

Prices in the Bradenton-Sarasota region dropped by a nickel in the past week, falling to $2.65 on Monday, according to AAA’s daily fuel tracker.

“If it weren’t for the recent hurricanes, gas prices would be about 25 cents lower,” Jenkins said. “Since gas prices decline much slower than they rise, it could take a few weeks before they reach equilibrium. Gas prices in the southeastern U.S. should drop another 5-10 cents this week.”

The statewide average Monday was $2.67, down from $2.73 a week earlier, but still well above the national average of $2.58.

According to GasBuddy’s daily survey of more than 300 outlets in the Bradenton-Sarasota region, Manatee County stations were averaging $2.66 per gallon on Monday, with Sarasota County at $2.67. Nearby, Pinellas County ($2.60) and Hillsborough County ($2.62) were slightly lower.

“Many motorists have asked why all gas prices haven’t come back down to pre-Harvey levels, and while the answer is complex, in short, it will take weeks or months to see gasoline inventories recover fully,” GasBuddy senior petroleum analyst Patrick DeHaan said. “But prices will continue to slowly drift lower as inventories slowly improve.”

Also, Florida is expected to consider setting up gas reserves as a way to counter the widespread shortages that spread across the state after millions of residents were told to evacuate ahead of Hurricane Irma.

This story was originally published September 25, 2017 at 12:39 PM with the headline "Tired of high gas prices after back-to-back hurricanes? Here’s why costs are ‘poised to plummet’."