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Florida gas tax holiday savings wiped out by OPEC+ production cut, price hike

JACKSONVILLE, Fla. – The latest price hike in fuel has essentially wiped out savings drivers could have seen from Florida’s gas tax holiday.

For the first time, the average price for a gallon of regular unleaded gas in the state is higher than before the tax holiday took effect.

As of Friday, the state’s average is $3.40 which is a penny higher than what the average was at the end of September, according to AAA.

The national average stands at $3.90, which is up 11 cents from the start of October. The average in Duval County is $3.39 a gallon.

RELATED: Saudis say US sought 1 month delay of OPEC+ production cuts

A state gas tax holiday, approved this year by lawmakers and Gov. Ron DeSantis, allows drivers to avoid paying the state’s 25.3-cents-a-gallon gas tax throughout October.

It went into effect in Florida at the start of October, and at that time, the state’s average for a gallon of regular gas dropped from $3.39 down to $3.17.

But those savings were wiped out last week when OPEC and its allies cut production and increased prices.

Rising oil prices — and by extension higher gasoline prices — have been a key driver of inflation in the U.S. and around the world.

On Tuesday, President Joe Biden warned of repercussions for Saudi Arabia over the OPEC+ decision.

“There’s going to be some consequences for what they’ve done, with Russia,” Biden said. “I’m not going to get into what I’d consider and what I have in mind. But there will be — there will be consequences.”