honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Thursday, May 28, 2009

Hawaii again has priciest gas in U.S.


BY Greg Wiles
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser
spacer spacer

Hawai'i has reclaimed the crown of having the highest gasoline prices in the nation, surpassing Alaska for the title.

Hawai'i had taken a back seat to Alaska for at least a year, with a gallon of regular averaging as much as 14 cents or more than Hawai'i. But in recent weeks, the gap has been narrowing, according to figures on the American Automobile Association's Daily Fuel Gauge Report.

Yesterday Hawai'i nudged Alaska from the top spot, with a statewide gasoline average of $2.730 a gallon, or just slightly more than Alaska's $2.727.

"For a while, Alaska was far and away the most expensive," said AAA spokeswoman Marie Montgomery Nordhues.

"If it's any consolation, California ($2.671) is not very far behind you."

Hawai'i's reign may be inconsequential given that consumers are more concerned about rising prices than they are about which state has the highest prices. It remains to be seen if the state remains atop the price list.

But Nordhues said it appears Hawai'i passed Alaska after prices peaked a few days ago while Hawai'i's kept rising, including a 2.5-cent a gallon jump that occurred between Tuesday and Wednesday.

Hawai'i has typically held the dubious title of having the highest gasoline prices in the nation. But Alaska's prices became highest in the country last year by a wide margin, prompting Gov. Sarah Palin in August to order an investigation into whether any wrongdoing was involved. The Alaska attorney general issued a report in January saying there was no collusion or price fixing involved.

Prices came down from historic levels reached last summer but have been creeping back up in recent months as crude oil inches up. Since the start of the year, crude prices are up 41 percent.

Some analysts expect prices to rise higher because an economic recovery would drive up demand for petroleum. Moreover, state and county taxes may rise this summer, hitting consumers who've already cut back spending because of the economic downturn.

Prices in all counties have been going up, with a gallon of regular crossing the $3 a gallon threshold on Maui yesterday.

In Honolulu, the average price was $2.643, while in Hilo it was $3.013. AAA does not survey Kaua'i prices.

The price report is collected from fleet vehicle credit-card transactions and represents the combined averages of the last card swipe of Friday.