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Oil prices drop, but gas prices remain high

Gas
Posted at 4:07 PM, Mar 16, 2022
and last updated 2022-03-16 18:28:11-04

PALM BEACH COUNTY, Fla. — Drivers across South Florida and the Treasure Coast are still feeling fuel frustration, despite the cost of oil dropping below $100 a barrel.

President Joe Biden tweeted Wednesday he wants to see gas prices drop faster as oil prices fall.

Ever since gas prices hit record highs, drivers have been feeling the impacts.

Raferty Bejarano commutes from Port St, Lucie to Jupiter, driving a van for work. Before prices soared, he was paying $65 to $70 to fill up.

"Now, with the increase in the cost I'm looking at around over $100 to fill up the tank," Bejarano said.

But some relief could be coming after possible ceasefire talks between Russia and Ukraine.

U.S. Crude Oil have dropped below $96 a barrel. Last week oil was hovering around $130 a barrel, the highest we've seen since 2008.

"It could be people were overly pessimistic on just how much of a disruption this was going to be maybe they're seeing some optimism in the defense of Ukraine," said Dr. Brian Strow, an economist at Palm Beach Atlantic University.

According to AAA, Florida is averaging $4.31 for a gallon of regular. WPTV found prices in Stuart anywhere from $4.25 a gallon to $4.86 a gallon.

So when will prices at the pump start dropping?

Strow said there is a lag time on both ends.

"Oil prices rise faster than gasoline prices. Gas retailers try to absorb some of the fluctuation in oil prices on the up and downside," Strow said.

Experts said for many gas stations, the price depends on how much they purchased the gas for, and it's unreasonable to think gas prices change exactly when oil prices change."

"Definitely frustrating, but what you gonna do I still gotta put gas in my tank and keep working," Bejarano said.

Drivers like Raferty are watching prices closely and he's hoping to start spending a little less.