TAMPA - Just in time to pinch our holiday budgets, gas prices are hovering near – and in some cases surpassing – the $3 mark.
According to AAA's Daily Fuel Gauge Report, the average price for a gallon of regular in Tampa on Thursday was $2.94, down a penny from earlier this week. Thursday's price in Tampa was up 13 cents from a month ago and more than 30 cents higher than a year ago.
That's not encouraging news for consumers because December is normally a time for low gas prices.
"This is typically when we see lowest gas prices of the year," said Jessica Brady, spokeswoman for AAA in Tampa, "instead we're seeing some of the highest prices."
The record cost of a gallon of gas in Tampa came in July 2008, when service stations were getting $4.18 a gallon.
While Tampa is still flirting with $3 a gallon, some markets, including Bradenton, Fort Lauderdale, Fort Myers, Gainesville, Miami, Sarasota and West Palm Beach, were either at or above the $3 a gallon mark on Thursday.
A variety of factors are behind the increased pump prices, Brady says.
For one, crude oil is traded in U.S. dollars. For some time now, the value of the dollar has been depressed, stoking the appeal of crude oil among investors because they can get more for their money. With increased demand come increased prices.
Just in the past couple of weeks, though, it's been dismal economic news that's pumped up the prices.
"U.S. employers added fewer jobs than even the worst forecast in November," Brady said. "That drove the dollar down and crude oil prices higher."
Other contributing factors are relatively low stockpiles of crude oil and increased demand from overseas markets, people traveling for the holidays and those in need of heating fuel.
Perhaps no one feels the gas price pinch like taxi drivers, whose livelihood can be directly impacted by increases at the pump.
At City Cab Inc. in Clearwater, rates haven't gone up in five years. Office manager Kim Ellis says the company just tries to absorb gas price jumps, but the drivers suffer.
"They're working a lot harder and a lot longer to make what they used to make in less time," Ellis said.
Taxi drivers at the company lease their cabs but have to pay for gas out of the money they make on rides. Ideally, tips would cover fuel costs, but that's not happening nowadays. The pinch is so tight, Ellis said, that in the past month, three drivers have left, in part because of the gas prices.
"I try to tell them I understand and I'm sorry, but there's not a lot I can do about it," Ellis said. "I try to be encouraging and understanding and maybe share experiences with them."
Cab drivers could be in for a long several months as Brady expects that gas prices could go even higher early next year.
Also hurting are couriers. At Affordable Courier Solutions in Seminole, president Barry Nierengarten relies on the AAA average to decide when to impose a fuel surcharge, with the threshold being around the $3.20 mark. The surcharge is usually between 5 percent and 8 percent of the customer's total.
The money goes directly to the drivers, who use their own vehicles and buy their own gas. The last time Nierengarten remembers charging extra for fuel was in 2008.
Though they haven't reached the magic surcharge number yet, Nierengarten said his 25 drivers certainly aren't happy.
"There's been some grumbling. As it gets louder, we'll address it," he said.
While any bump in gas prices is unwelcome, Brady says it's especially disconcerting when gas nears the $3-a-gallon mark.
"It's a psychological breaking point. A lot of people get really anxious and think they'll get up to $4 or $5 like they did in 2008," Brady said.
"People will start cutting back and consolidating errands. Maybe people will start to carpool. People are still very anxious and people are still hurting."
