It seems almost everything is riding on the fiscal cliff, including the price we pay at the pump.
New this morning, the average price in Florida is $3.35, more than five cents higher than the national average. GasBuddy.com reports the average price in Jacksonville is $3.37, up nine cents in the psat week.
AAA Florida says if a deal is reached to avoid the fiscal cliff, prices will likely increase, as the news is sure to create economic optimism in the market.
If we go over the cliff, prices will most likely retreat on speculation fuel demand will fall even further than it has in the past few months.
Currently, oil prices are holding steady around $90 a barrel as a deal on the fiscal cliff remains unknown and U.S. gasoline stockpiles are at a nine-month high as demand continues to wane.
"Almost everything is riding on whether or not a deal is made to avoid the fiscal cliff,” said Jessica Brady, AAA spokeswoman.
"If the fiscal cliff is not avoided and the economy falls back into a recession, we’re sure to see gas prices drop as fuel demand recedes. If a plan is put into place, gas prices will likely continue to increase throughout January, however it’s doubtful we will see an immediate spike in fuel demand.”