Posted at 11:45 a.m., Thursday, April 8, 2004
O'ahu drivers live with $2.06 a gallon
By Debbie Sokei and Sean Hao
Advertiser Staff Writers
The higher prices haven’t caused Hawai'i drivers to change their driving habits. For most, paying high gas prices is just a way of life.
"There is no question the prices are just out of line. Unfortunately, most people can’t do anything about it. You pay the piper and live with it," said Dan Bishop of Waikiki as he filled his Chrysler Sebring at the Shell gas station at the corner of Beretania and Makiki Street.
Bishop said he’s been shopping around for the cheapest gas, but will not go out of his way to fill his tank.
"You’ll end up burning it up to go get it," Bishop said.
The state is set to impose the nation’s only gasoline price cap on July 1 unless a bill working its way through the Legislature postpones it. The bill would delay the cap for one year.
However, the law as written would cap prices for regular at $2.31 on O'ahu under current market conditions.
Marita Biven spends $30 to fill her car’s tank. "It’s something that you have to work into the budget," she said. "What can I do?"
Bill Loeffler spent $42.55 to fill the tank of his Cadillac DeVille at the Shell station. He gets 9 miles per gallon and fills up twice a week.
"My car eats a lot of gas, and I can only use premium gas," Loeffler said.
Loeffler uses his car for his consulting business and to get to his second job in Waikiki. With Hawai'i's high cost of living and the increased gas prices, Loeffler said, he’s been trying to drive less and is thinking about getting an economical car.
Loeffler also got a Shell gas card, which allows him to pay his bill over time.
To save a few dollars on gas, Kanani Chung waits in long lines at Costco’s Iwilei gas station.
"The prices are getting outrageous," Chung said.
Chung, a corrections officer, uses her car to get to work in Kailua every day. She spends between $37 and $40 a week filling up her Dodge truck.
"I run it all the way down to empty before I put in again," Chung said.
O'ahu still has it better than Neighbor Islands. This morning the O'ahu average dipped to $2.054, which was just below the record of $2.055 set just yesterday. The average price for regular on Maui hit a new high of $2.389 a gallon today.
California residents pay the highest average pump prices in the nation — $2.198 for self-serve regular gas.
The price caps that take effect July 1 tie Hawai'i prices to those on the West Coast. The bill was passed in 2002 after the state settled a price-fixing lawsuit with refiners for $22 million.
The price caps prevent Hawai'i wholesalers from charging more than 22 cents above the five-day average spot wholesale price for regular gasoline in Los Angeles, San Francisco and Portland. That average for last week was about $1.35 a gallon, which results in a local wholesale price cap of $1.57 a gallon.
Hawai'i’s law also would cap retail prices at 16 cents above wholesale prices, which would result in a price ceiling of $1.73 a gallon before taxes.
Tack on about 58 cents in federal, state and local taxes, and gas prices on O'ahu would be capped at $2.31 a gallon under the price-ceiling formula. Although stations won’t be forced to charge the highest amount possible, part of the concern about price caps is that gasoline retailers will charge higher prices when they can to recoup profits lost during periods when prices are capped at a low level.
In addition, the price cap law caps the price of only regular gasoline, so stations could charge more for other grades of gasoline or simply stop selling regular.
Reach Debbie Sokei at dsokei@honoluluadvertiser.com or 525-8064. Reach Sean Hao at 525-8093 or shao@honoluluadvertiser.com.