Pump prices rise amid global tensions with Iran

South Florida Business Journal by Ashley D. Torres, Reporter

South Florida pump prices remain on a steady rise, as global tensions with Iran and fear of a Middle Eastern war result in higher oil prices.

Tri-county gas prices climbed 8 to 9 cents last week as oil prices climbed $6.53 to close Friday at $109.77 on the New York Mercantile Exchange, according to the AAA Fuel Gauge Report. Friday’s close marks the highest closing for oil since May 2011.

The high gas prices are linked to rising oil prices amidst global sanctions against Iran. In June, the U.S. will begin imposing sanctions on financial institutions that work with Iran and, in July, the European Union will impose bans on imports of Iranian oil, according to AAA AAA Latest from The Business Journals Fuel prices accelerating in TriangleTriad gas prices climb higherGas prices surge yet again this week Follow this company . Iran produced about 3.5 million barrels of oil a day in January, making it the second largest oil-producing country in the Organization of Petroleum Exporting Countries.

“Concern and fear are driving the market at this time and pushing oil prices to nearly $110 a barrel, resulting in record-breaking pump prices for this time of year,” said Jessica Brady, AAA spokeswoman for The Auto Club Group, in a news release. “This is happening at a time when reports show a slow, but steady global economic recovery. However, the increased cost of gas could have a negative impact on the economic turnaround as it eats in to more consumers’ disposable income. Unfortunately, we’re not expected to see relief at the pump anytime soon, instead prices are expected to increase well into spring and summer.”

The national average price for a gallon of regular unleaded gasoline rose 13 cents, to $3.69. Florida’s average price of $3.75 a gallon was up 8 cents from the prior week.

South Florida fuel average details:

* Miami: A gallon of regular unleaded gasoline was $3.83, up from $3.74 the previous week and $3.44 a year ago.
* Fort Lauderdale: Regular unleaded reached $3.82 a gallon, up from $3.74 the previous week and $3.42 a year ago.
* West Palm Beach/Boca Raton: A gallon of regular unleaded was $3.85, up from $3.77 the previous week and $3.47 a year ago.

Miami-Dade County Commissioner Jose “Pepe” Diaz took note of the high gas prices and partnered with Finish Line gas station in Sweetwater to offer motorists gas at $2.27 a gallon, up to $20. The discounted rate will be offered today from 10 a.m. to 11:30 a.m. and marks the close of the commissioner’s “14 Days of Neighborly Love” initiative.