Florida’s average gas price crossed $4 per gallon for the first time in four years last week, reaching $4.23 on a statewide basis, with Miami at $4.19 per gallon. The jump represents a 47 percent increase in a single month, driven entirely by the US-Iran war and the effective closure of the Strait of Hormuz since late February. AAA spokesman Mark Jenkins put the personal cost plainly: “The average Florida driver now pays about $20 more to fill up than a month ago.”
For Miami’s gas station owners, the pricing environment has become a daily game of nerves. Lee Doucette, a second-generation station owner in Miami-Dade County, explained the mechanics in an interview with WLRN. Each morning, his fuel wholesaler sends an email with a price valid for 24 hours. That price determines what Doucette posts on his roadside sign. When prices are swinging 5 percent or more per day, a single wrong decision on when to refill the underground tanks can cost thousands of dollars. “Before prices start to jump, you have to start raising the retail price a little bit so you don’t get hit to invest hugely into your inventory,” Doucette said. An additional $5,000 is required to buy 10,000 gallons for every 50 cents per gallon increase in the wholesale price.
The pain is not evenly distributed. Airlines have responded by raising checked bag fees, with Delta and United each adding $10 to the cost of the first two pieces of luggage. The US Postal Service has introduced an 8 percent fuel surcharge on packages for the first time in its history, effective April 26 and running at least through January 2027. FedEx is currently levying a 26.5 percent fuel surcharge. These costs flow through the supply chain in ways that appear in higher prices, smaller package sizes, slower delivery windows and reduced discounts well before they show up in official inflation data.
Small businesses occupy the most precarious position. Nick Friedman, co-founder of Tampa-based College Hunks Hauling Junk and Moving, explained the dilemma facing fleet-dependent operators across the region. Historically, fuel has consumed 3 to 5 percent of the company’s revenue. Since the war began, that figure has risen to between 6 and 10 percent. “We are in a bit of a Catch-22,” he said. “Our fear would be if we start raising prices it will hurt our customers.” With moving customers able to trade down or use informal alternatives, Friedman cannot easily pass the full increase on. With 2,000 trucks to fuel and a franchise model affecting over 200 locations, the pressure is structural rather than temporary.
The national average reached $4.15 per gallon on Wednesday morning, according to Gas Buddy, with diesel averaging $5.62, up nearly 50 percent since the war began. Diesel price movements matter disproportionately because diesel powers the trucks carrying nearly everything Americans buy. Economists estimate a 10 percent rise in diesel prices pushes the headline consumer price index upward by approximately 0.1 percent, a figure that compounds across every sector touching goods distribution.
The ceasefire announced Tuesday night has already sent oil prices sharply lower, with West Texas Intermediate falling more than 16 percent in after-hours trading. Whether that translates into meaningful relief at Miami pumps over the next two to three weeks depends on how quickly tanker traffic through the Strait of Hormuz normalises and how fast wholesale prices adjust. Gas station owners have learned over the past five weeks that prices rise faster than they fall. Miami drivers watching the pump total on their way to work Thursday morning will know that a 47 percent increase does not reverse overnight.
