The state attorney general is pleased as the state averages a drop of 7.3 cents per gallon, close to the 8 cents mandated.
By Associated Press
Published August 5, 2004
TALLAHASSEE - Florida gas stations have cut prices by an average 7.3 cents per gallon of regular unleaded, AAA said Wednesday, reporting the first clear evidence that a monthlong gas tax break is having its intended effect.
The information is based on a survey of nearly half of Florida's 11,000 gas stations and reflects the difference in price on Tuesday compared with the last Friday in July, according to Kevin Bakewell, senior vice president of AAA South, which includes Florida, Georgia and most of Tennessee.
"We certainly feel good about the fact that it's clearly approaching 8 cents a gallon," Bakewell said.
The 8-cent tax break took effect Sunday, the first day of August, and, by law, must be passed on to consumers. But retailers don't have to cut the tax until they start selling gasoline they purchased from suppliers after Sunday.
However, many stations decided to drop prices 8 cents right away to avoid misunderstandings with customers, according to Jim Smith of the Florida Petroleum Marketers.
Smith said wholesale prices have climbed 3 cents since Tuesday but gas station owners were still trying to pass along the tax break.
"Most of them are just going to hold the line as long as they possibly can," he said.
Crude oil prices are at historic levels but Bakewell said gas prices at the pumps across the country have still dropped about a penny since Friday. The structure of gas pricing is a complex one that can't always be predicted, he said.
The 7.3 cent average drop reported by AAA reflects just the impact of the tax break, Bakewell said.
AAA intends to track prices in Florida by comparing them to the average price in Georgia and Tennessee.
The average price of a gallon of gas in Florida on Tuesday was $1.852, compared with $1.777 in Georgia and $1.801 in Tennessee.
Around Florida, prices varied from a low of $1.786 cents in Pensacola to $1.925 in the West Palm Beach-Boca Raton area.
The Gainesville area saw the biggest drop in prices since Friday, falling 8.9 cents, compared with just 6.8 cents in Tallahassee and the Bradenton-Sarasota-Venice area.
The office of Attorney General Charlie Crist has received about 200 complaints about noncompliance since the tax break took effect Sunday, according to Crist spokeswoman JoAnn Carrin.
The office is still checking out the complaints and Crist is pleased with the signs of compliance, Carrin said.
Bakewell said his office had received very few complaints from its members as of Wednesday.
"We've got 2.8-million of them, and they don't hesitate to call us if they think there's a problem," he said.
Consumers can report suspected violations online at
www.myfloridalegal.com or by calling toll-free 1-866-966-7226. [Last modified August 4, 2004, 23:56:21]
