Gas prices dip, but remain high in Daytona Beach, rest of Florida

DAYTONA BEACH — After climbing to new all-time highs a week ago, gasoline prices both in Daytona Beach as well as the rest of Florida have been slowly inching down.

On Monday, the average price for regular gasoline was $4.451 a gallon for the combined Volusia-Flagler area, down nearly a nickel from the record $4.495 a gallon set on May 16, according to AAA Auto Club.

But don't expect gas prices locally to fall back below $4 a gallon anytime soon.

"Even though pump prices have moved slightly lower, gas prices on Memorial Day are still forecast to be the holiday's most expensive yet," wrote Mark Jenkins, a Tampa-based spokesman for AAA in his weekly report on gas price trends on Monday.

"A combination of tightening global supplies and strengthening demand are the main culprits behind this unprecedented pain at the pump," he wrote. "Unfortunately, there doesn't appear to be a quick end in sight. Gas prices are likely to continue fluctuating throughout the summer and remain well above year-ago levels."

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One analyst predicts gas could top $6

One industry analyst, Natasha Kaneva, head of commodities research, made national headlines last week when she warned in a note to investors that the average price of gasoline nationally could top $6 a gallon by August because of the combination of "strong driving demand" this summer and tight global supplies, according to numerous news reports.

Predictions by other analysts have not been as dramatic, but some concede that an average of $5 a gallon gas could be a possibility.

The website GasBuddy.com tracks prices at individual stations throughout the country based on motorists' reports. On Monday morning, it reported that prices at individual stations in Volusia County ranged from a low of $3.99 a gallon at the Chevron station at 1631 County Road 421 and South Williamson Boulevard in Port Orange to a high of $5.29 a gallon at a BP station in DeLand, the only one locally so far above $5.

In Flagler County, gas prices on Monday morning ranged from a low of $4.35 a gallon at the Hess station at 6701 S. U.S. 1 in Bunnell to a high of $4.59 a gallon at a Sunoco and Citgo also in Bunnell, according to GasBuddy.

Rebecca Babin, a senior energy trader with CIBC Private Wealth U.S., told Yahoo Finance Live, that "demand destruction" — figuring out how to encourage consumers to drive less — is the only way to truly halt gas price increases this summer, given the current global situation including Russia's ongoing invasion of Ukraine.

"There's a lot of talk around $5 a gallon at the pump as a place where you start to see the consumer shy away," she told Yahoo Finance.

At the RaceTrac gas station on the corner of Beville Road and Williamson Boulevard in Daytona Beach on May 16, motorist D. Mitchell said he has already reduced his car trips because of the high gas prices. "It sucks," he said as he refueled his car for $4.49 a gallon that day.

When asked whether he planned to make any long car trips this summer, he said no. "We were going to lay low anyway this year," he said.

Despite Mitchell's comments and despite the high gas prices, the number of Floridians making long car trips this coming Memorial Day holiday weekend is forecast to increase by 100,000, up 5.4% from last year, according to AAA. The three-day weekend traditionally marks the start of the summer tourist season. 

Where gas prices currently stand

Average price for a gallon of regular gasoline:

DAYTONA BEACH

Monday: $4.451

Sunday: $4.456

Week Ago: $4.495

Month Ago: $4.089

Year Ago: $2.849

Highest Recorded Average Price: $4.495 (May 16, 2022)

Previous Record Average Price (prior to Russia's invasion of Ukraine): $4.117 (July 17, 2008)

FLORIDA

Monday: $4.477

Sunday: $4.481

Week Ago: $4.497

Month Ago: $4.106

Year Ago: $2.874

Highest Recorded Average Price: $4.497 (May 16, 2022)

Previous Record Average Price (prior to Russia's invasion of Ukraine): $4.079 (July 16, 2008)

SOURCE: AAA Auto Club