Palm Beach County gas jumps to $3.89. Why we pay highest in Florida
Palm Beach County gas prices rose 27 cents since last week and reached an average of $3.89 per gallon of regular gas on Monday, March 16, up from last week's price of $3.62 per gallon, according to AAA-The Auto Club.
The average fuel price in Florida is $3.73, a rise of 23 cents since last week. A year ago, the average gas price in Florida was 16% lower, at $2.99 per gallon. Palm Beach County usually has the highest gas prices in the state, for numerous reasons.
According to AAA, gas prices across the state in the last year have been as low as $2.60 on Jan. 12, 2026.
➤ INTERACTIVE: See how your area's gas prices have changed over the years at data.palmbeachpost.com.
The average gas price in the United States is $3.72, up 20 cents since last week.
Gas prices have risen steadily since the U.S.-Israeli strikes in Iran started Feb. 28.
Gas prices were already rising before the attacks on Iran began Feb. 28. It's a regular seasonal swing as spring arrives, according to AAA.
Analysts said the war hikes gas prices partly because of supply issues and partly because of global uncertainty.
Why Palm Beach County has the highest gas prices in Florida
Experts at AAA-Auto Club South and the website GasBuddy say there are numerous reasons for the dubious distinction.
“The biggest difference-maker in Palm Beach County prices is based on the cost of living and operating a business. If it costs more to keep the lights on, then you are likely to find higher costs for consumers as well,” Tampa-based AAA spokesman Mark Jenkins said.
What other factors are to blame?
Competition, or a lack of competition
Stations near low-price leaders such as Costco and Sam’s Club are likely to offer lower prices, too. Conversely, if there is no large gasoline retailer in an area, prices tend to be higher.
Price zones
A pricing practice known as zoning takes into account the number of competing stations, number of vehicles, average traffic flow, population density, income level and more. Set by the gasoline suppliers, price zones can result in varying prices for the same brand at stations a few miles apart.
Motor fuel tax rates
At about 39.4 cents per gallon in state gas taxes, plus local fuel taxes that can add roughly a dozen cents more, and 18.4 cents in federal taxes, drivers in Palm Beach County can pay close to 70 cents per gallon in fuel taxes.
Distribution cost
These vary depending on how far trucks have to travel from a terminal to gas stations. Palm Beach County has no gasoline terminal. Port Everglades in Broward County is South Florida’s primary storage and distribution center for refined petroleum products, and all of Palm Beach County’s gasoline comes from there.
Property taxes, insurance and leasing costs
These tend to be higher near airports and interstate on- and off-ramps and in higher-income municipalities such as Boca Raton and Jupiter.
The market
Station owners charge what the market will bear. In an affluent county, that ends up with prices being higher. Higher-income communities also tend to have fewer gas stations, resulting in less competition. What does it boil down to? They charge more because they can.