Drivers in South Florida can expect gas prices in the $6 range later this summer, and prices at your neighborhood stores won’t be dropping anytime soon.
“Housewives especially, they know inflation," said Nova Southeastern University Professor Albert Williams. "They are economists by themselves because they recognize that they are not bringing home the same amount of food for their money."
By midday Monday, drivers were lined up outside discount retailer Costco in Davie, buying some of the cheapest gas in the region: $4.39 for regular unleaded.
These prices did not last, however, as one attendant explained that the price per gallon spiked Sunday overnight into Monday by 20 cents.
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Jackie Delgadillo was just back from Florida’s west coast, complaining about how the price per gallon there is $4.75
“I’m looking at the gas over there to here, the prices are just skyrocketing.”
Williams said the reality is higher fuel prices always drive up the cost of almost all other goods.
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“You go to agricultural, you go to manufacturing, you go to tourism, you go to transport, I mean fuel is the foundation of transport,” said Williams.
“So if you stop and think, if fuel prices go up, expect down the road that other things will.”
Williams explained that the drastic rise in prices cannot be attributed to just one cause.
“The sticker shock is coming from a combination of factors: the European Union hitting Russia with more sanctions on oil and gas, further limiting global fuel supply," he said. "Demand is also rising in the U.S. as the busy summer travel season approaches."
In addition, the impacts of the pandemic have yet to subside, continuing to affect the fuel industry.
"The demand just vaporized early in 2020 due to the pandemic," said Patrick de Haan, Head of Petroleum Analysis in Gasbuddy.
De Hann said this caused oil companies shut down during the pandemic.
"Then the economy came roaring back and it was a game to catch up with furious increases in supply and we're still losing that game," he said.
"Oil producers weren't prepared for this kind of pandemic economic bounce-back."
With inflation topping 8 percent and gas prices continuing to climb, Williams said people will likely have to make adjustments when it comes to their personal finances.
“You have already learned to live like this, and so when you have to make adjustments in your life, that is not so easy to do,” said Williams. “But some of it might be necessary if you see that your money cannot buy what you used to buy."
