Price Of Gas In Key West Reflects LNG Terminal Impact
Price of Gas in Key West: Current Levels and LNG Terminal Impact
As of May 2026, the average price of regular gasoline in Key West is $3.71 per gallon, up from $3.33 just weeks prior and reflecting a sharp spike to over $4.00 during the March 2026 Iran conflict disruption. The LNG terminal impact on regional fuel pricing stems from Florida's growing liquefied natural gas infrastructure, which influences wholesale electricity costs and transportation fuel blend requirements across the Keys supply chain.
Current Gas Prices in Key West by Fuel Grade
Key West gasoline prices remain elevated compared to the Florida state average due to the island chain's isolated fuel logistics, requiring barged delivery along the Overseas Highway corridor.
| Fuel Grade | Current Avg. Price | Week Ago | Month Ago | YTD High |
|---|---|---|---|---|
| Regular | $3.71/gal | $3.71/gal | $3.71/gal | $3.79/gal (01/30/25) |
| Mid-Grade | $4.03/gal | $4.03/gal | $4.03/gal | - |
| Premium | $4.45/gal | $4.45/gal | $4.45/gal | - |
| Diesel | $4.32/gal | $4.32/gal | $4.32/gal | $4.40/gal (03/06/25) |
The March 2026 geopolitical shock pushed Key West prices to more than $4.00 per gallon at multiple stations, the highest daily average since August 2024.
Cheapest Gas Stations in Key West (Ranked by Regular Unleaded)
For procurement teams and fleet operators, identifying the lowest-cost fuel nodes is critical for margin management in the Keys region.
- Owens - 2106 N Roosevelt Blvd: $3.52/gal (as of Oct 23, 2025)
- Circle K - 1190 Overseas Hwy: $4.04/gal
- Shell - 3032 N Roosevelt Blvd: $4.10/gal
- Exxon - 3700 N Roosevelt Blvd: $4.10/gal
- Mobil - 1127 Truman Ave: $4.10/gal
Owens offers the most competitive pricing in Key West, undercutting the average by nearly 20 cents per gallon.
How LNG Infrastructure Influences Regional Fuel Costs
The expansion of LNG export terminals in Florida affects gasoline pricing through three primary mechanisms: electricity displacement, pipeline pressure dynamics, and refinery feedstock competition.
- Electricity displacement: LNG-fueled power generation reduces diesel demand for backup generators, indirectly stabilizing transportation fuel margins
- Transportation logistics: Barged fuel delivery to Key West remains the bottleneck, with island supply chain constraints adding 15-25 cents/gallon versus mainland Florida
- Geopolitical sensitivity: The March 2026 Iran conflict caused a 57-cent-per-gallon surge in Florida, with Keys prices exceeding $3.94 on March 8, 2026
"Prices at the pump moved up quickly early last week as oil prices rallied," said Mark Jenkins, spokesman for AAA - The Auto Club Group, during the March 2026 spike.
Historical Price Context and Volatility Drivers
Key West gasoline has exhibited heightened volatility compared to mainland Florida due to its reliance on single-point fuel imports and limited storage capacity.
In 2022, Florida Keys gas prices hovered near $5.00/gal during summer tourism peaks, driven by supply constraints and seasonal demand. By mid-2025, the state average fell to $3.083/gal, but Key West remained ~15% higher due to logistics. The March 2026 Iran conflict reversed much of this relief, pushing crude to $90.90/barrel-nearly $24 higher week-over-week.
Key concerns and solutions for Price Of Gas In Key West Reflects Lng Terminal Impact
What is the current price of regular gas in Key West?
The current average price of regular gasoline in Key West is $3.71 per gallon as of May 2026, with the cheapest station (Owens) offering $3.52/gal.
Why are gas prices higher in Key West than mainland Florida?
Key West prices are higher due to isolated fuel logistics requiring barged delivery, limited storage, and supply chain constraints that add 15-25 cents/gallon versus mainland Florida.
How does the LNG terminal impact gas prices in Key West?
LNG terminals influence regional fuel costs through electricity displacement, pipeline pressure dynamics, and refinery feedstock competition, indirectly affecting gasoline margins.
What caused the March 2026 gas price spike in the Florida Keys?
The March 2026 Iran conflict caused crude oil to surge 36% in one week to $90.90/barrel, pushing Keys gas prices from under $3.00 to over $4.00/gal in some locations.
Where is the cheapest gas in Key West?
Owens at 2106 N Roosevelt Blvd offers the cheapest regular gas at $3.52/gal, undercutting the Key West average by nearly 20 cents.
