The average price in the islands for a gallon of regular unleaded today was a record $2.466, which was first reached Friday. California's average was slightly lower at $2.465 a gallon, according to AAA's daily fuel gauge report.

"It's virtually neck-and-neck," said Jeff Spring, spokesman for the Automobile Club of Southern California, which also includes Hawai'i.

The national average was a record $2.17, up more than 3 cents from Sunday and 24 cents from a month ago.

Analysts say strong demand leading up to the summer months, the transition to cleaner-burning gasoline mixtures and the sharp hikes in the cost of crude oil have driven up gas prices.

Spring said there have been times in the past several years when California took the lead in gas prices, such as in March 2003 when prices in the state surged 36 cents in a month.

Nevada had the third highest gas prices today at $2.383, followed by Oregon ($2.279), Washington ($2.276), Wisconsin ($2.255) and Michigan ($2.235), while Arizona was tied with New York at $2.227, according to AAA.

Motorists in New Jersey enjoyed the lowest prices in the nation at $1.987. It was the only state below the $2 mark.

Honolulu resident Joe Olowofoyeku, who pays $50 every time he fills up his Mercedes Benz S500, powered by a gas-guzzling V-8, said he feels powerless at the pump.

"What are you going to do about it? There's nothing you can do," he said.

Even with high gas prices, Olowofoyeku said he bought a larger car to comfortably drive around his children and because he's tall.

"I'm pretty big guy so I wouldn't buy a small Toyota," he said.

Coming from Northern California, Steve Golant, of Santa Rosa, Calif., said he wasn't too shocked at the island prices. He said record gas and housing prices are taking a financial toll on his family and America's middle class.

"I think we've been going down the wrong track," he said. "The wealthier are getting wealthier while the middle class is stagnant and deteriorating. This country is making huge mistakes. It's not a formula for a great future.

"We're also at the mercy of OPEC and the oil-producing countries that have us over a barrel."

The Organization of Petroleum Exporting Countries agreed last month to boost its output quota by 500,000 barrels a day, or 1.9 percent. Members are already producing above their quotas.

While prices in Hawai'i have ranged from $2.35 to $2.45 for several months, California has fluctuated about 50 to 60 cents a gallon.

"The upside for Hawai'i is you don't have major spikes. The downside is that it's constantly up," Spring said.

Prices on the Mainland are more volatile because of seasonal transitions in the fuel mixture, which temporarily affects supply and drives up prices. Also, Hawai'i has a more predictable, steady year-round demand for fuel with limited distances to drive.

The island of Maui had the highest gas prices in Hawai'i and the nation at $2.719 per gallon, compared with $2.374 for O'ahu and $2.515 for the Big Island, the auto club said.

Hawai'i has been trying for years to control gas prices in the islands. A law that imposes limits on gas prices is set to go into effect in September.

Supporters of the measure argue the oil companies have kept prices artificially high for years. They cite a state attorney general's report from the late 1990s that showed Chevron made about 23 percent of its profits in Hawai'i, which accounts for only 3 percent of its market.

ChevronTexaco and Tesoro Petroleum Corp., which operate the only two oil refineries in the state, have attributed the prices to the cost of doing business in the islands.

But for a few, gas prices aren't an issue.

Emil Dill, 39, uses a black mountain bicycle to get around Honolulu and has never owned a driver's license, let alone a vehicle.

"You really don't need it. There's so many cars, it's ridiculous," Dill said.