Posted on: Tuesday, January 25, 2005

Lingle plans to repeal law on gas price caps

Associated Press

Gov. Linda Lingle said yesterday she would move for repeal of the state's one-of-a-kind gasoline price cap law before it goes into effect in September.

The administration also is seeking $400,000 in the next fiscal year to fund three new jobs to help with oversight of the law that was passed in 2002 and revised last year.

House leaders said they would study the law to see if any changes needed to be made.

The law requires the state to set a maximum price at which gasoline is sold at the wholesale level based on a national average of prices. The Public Utilities Commission would implement the law with oversight by Business and Economic Development Director Ted Liu's department.

Senate President Robert Bunda said the cap is needed.

Supporters say there is no economic reason for Hawai'i's gasoline prices to be typically higher than other states. Opponents say Hawai'i's anti-business climate and high taxes drive up costs.