Gas prices surge as dollar falls

By Palm Beach Business.com

DELRAY BEACH — Gasoline prices have taken quite a leap over the past week and likely have yet to peak.

According to the U.S. Energy Information Administration, the average price of a gallon of regular jumped to $2.958 nationally from $2.856 a week ago. In Florida, regular is averaging $2.93 a gallon, up from $2.832, according to the feds. A month ago, regular averaged $2.804.

AAA’s Fuel Gauge Report has Palm Beach County averaging $3.046, up from $2.949 a week ago and $2.909 a month ago. As usual, the county was the most expensive gasoline market in the state. However, gasoline below the $3 a gallon threshold was still fairly common in South Palm Beach County.

Diesel prices were up but not nearly as sharply. EIA had the national average at $3.197 a gallon, up from $3.162 a week ago. In Palm Beach County, Diesel averaged $3.276, according to AAA.

The value of the U.S. dollar retreated on poor economic news in November and increased the appeal of crude oil as a commodity to foreign investors. Typically, that kind of news would push prices down as a sign of diminishing demand for energy, but the loss pushed crude prices up more than $5 to settle Friday at $89.19 a barrel on the New York Mercantile Exchange.

Fuel consumption also dropped off after the Thanksgiving push, and is down 1.8 percent reaching its lowest level since October.

"The November news is very likely to keep the value of the dollar down and oil prices high, pushing them above $90 a barrel," said Jessica Brady, manager, AAA Public Relations. "This is not good news going into the December holiday season and while we don't expect the higher gas prices to deter many holiday travelers, it will definitely make consumer wallets a little tighter.

“Gas prices have already shown steep increases going into this week and will likely continue upwards as a result of the $5 plus increase in the price of oil."