Gas prices soared 45 cents Monday morning, leaping over the $3.80 mark for a gallon of self- or mini-serve, regular, unleaded gasoline. Regular, unleaded gasoline, which was selling for $3.37 a gallon at the 76 Station across the street from
Gas prices soared 45 cents Monday morning, leaping over the $3.80 mark for a gallon of self- or mini-serve, regular, unleaded gasoline.
Regular, unleaded gasoline, which was selling for $3.37 a gallon at the 76 Station across the street from The Garden Island newspaper building on Kuhio Highway Monday morning, was selling for $3.82 by noon.
Members of the state Public Utilities Commission (PUC) raised their gas cap on a wholesale gallon of regular unleaded gasoline last Wednesday by 45 cents, for the period effective Monday, Sept. 12 through this Sunday, Sept. 18.
state gas-cap law went into effect last Thursday, Sept. 1, the pretax cap price has gone up 72 cents.
The weekly maximum pretax whole-sale price of gasoline for the period of Monday, Sept. 12 to Sunday, Sept. 18, for Kaua’i, was set at $3.01. That is the price excluding tax and station operators’ profit.
New prices for Monday, Sept. 19 through Sunday, Sept. 26, will be set by PUC members today, Wednesday, Sept. 14.
One industry expert said lower prices are likely on the way.
David Hackett, president of Stillwater Associates LLC, a fuel- and gasoline-industry consultancy whose leaders have worked with officials in state government in studying the gas-cap law, said the rate set by the PUC members today will likely be lower than last week’s rate.
“I don’t know how much lower, but it’s a safe bet it will go down,” Hackett said. He said stabilized Mainland gas prices, refineries coming back on line, and easing of pump prices on the Mainland, all signal a potential lowering of cap prices here.
The weekly cap established by PUC members sets the maximum amount officials at the oil companies can charge for wholesale gasoline.
The Hawai’i price calculations are based on wholesale gasoline prices in New York, the Gulf Coast, and Los Angeles.
Los Angeles, the second-largest U.S. city, lost electric power Monday, blacking out downtown and some nearby cities. An oil refinery was idled, and people were stranded in elevators.
Officials at the Los Angeles Department of Water and Power, the nation’s largest municipal utility, yesterday were still trying to determine the cause and the number of customers affected.
Hackett said this development could impact Hawai’i prices.
“When power goes out, the refinery goes down. It could take a half-day to several days to get back online.”
Martin Rice, author of the weekly Rice Report, a survey of gasoline prices at all 20 Kaua’i stations, said, “Prices are indeed going up again, due entirely to the greed and profiteering of the big oil companies. Our oil doesn’t come from the Gulf of Mexico and, therefore, shouldn’t be affected by the aftermath of Katrina.”
Rice, the chair of Kaua’i’s Democratic Party said, “Governor Linda Lingle has been ineffective in dealing with this problem. She asked that Big Oil not take advantage of the Katrina-induced high price cap, but they ignored her. She has no clout.”
Although the law provides Lingle with the authority to suspend the gas-cap law in part or in whole if it is determined to cause significant adverse impacts to the economy or public health and safety, she emphasized she will not exercise the emergency power based solely on a rise in the wholesale price cap.
According to AAA’s daily fuel gauge report, the national average for a gallon of unleaded gasoline Monday was $2.967; for Hawai’i, it was $3.276, or almost $1 more than the same time last year. Nationally, the average price of unleaded gasoline increased by $1.12.
State Department of Commerce and Consumer Affairs’ Division of Consumer Advocacy officials are urging all consumers to use a toll-free hotline and Web site to report any problems they may be having with the new gascap law.
State Consumer Advocate John Cole says he hopes consumers will be proactive and report problems with the new law, especially on the Neighbor Islands, so that his office and other state agencies can respond to them quickly.
“We are trying to gauge the impact of this law on consumers and businesses, and especially want to hear about dramatic price increases, reduced station hours or closures, long lines, supply shortages, or any other problems,” said Cole.
Anyone who wishes to report problems or issues regarding the gas cap should contact the Consumer Advocate’s Office by phone, mail, or via an online survey form on the Internet: John Cole, Consumer Advocate, Department of Commerce & Consumer Affairs, Division of Consumer Advocacy, 335 Merchant St., Room 326, Honolulu, HI 96813. The toll-free number is 1-800-830-4295.
The Web address is gascap.hawaii.gov, and offers consumers a chance to learn about the new law, view a list of frequently-asked questions, fill in an online survey to report problems, and find other informative Web links, Cole said.
A separate hotline and e-mail for gasoline retail-station owners and operators has also been established. Retailers may contact officials at the state Department of Business, Economic Development & Tourism, toll-free at 274-3141, then dial 6-2752# after the recorded message, or e-mail gasoline@dbedt.hawaii.gov, to offer comments about how the cap on wholesale gasoline is affecting their business or industry.
