Senate votes 12-1 to study gas prices

By B.J. Reyes
Associated Press

The Senate Ways and Means Committee yesterday approved a resolution setting up a joint House-Senate committee to study gasoline prices in Hawai'i.

The investigative committee would look at available information about how gasoline prices are set, including depositions and other court documents from the state's recently settled four-year price-fixing lawsuit against oil companies.

House members have criticized the measure and have instead approved measures to set a price cap on gasoline prices.

A final measure on how to deal with the state's gasoline prices, traditionally among the highest in the nation, would have to be worked out in conference committee.

"There are a lot of members that are supportive of" setting up the joint committee, said Ways and Means chairman Brian Taniguchi, D-11th (McCully, Mo'ili'ili, Manoa). "Hopefully, we'll get something out of conference."

The Senate's money committee approved the resolution 12-1 with two members absent.

Sen. Sam Slom, R-8th (Wai'alae Iki, Hawai'i Kai), cast the sole "no" vote.

"We are duplicating what the state has just spent millions of dollars on in terms of investigating," he said. "Also there's nothing in (the resolution) about taxes, and taxes represent a large portion of the cost of gasoline.

"It seems to me that this is yet another study or another group that's going to be going in one direction, and that is for government control on one aspect of this commodity and I don't think that's going to serve anybody's purpose."

State attorneys said information gained from the price-fixing lawsuit shows there is no economic reason that Hawai'i's gas prices are so high, accusing oil companies of engaging in anticompetitive practices to reap high profits.

Oil companies contend that factors such as high state taxes, few suppliers at the wholesale level and barriers to entry for competitors all contribute to Hawai'i's high gasoline costs.