Gasoline prices rose sharply at many stations across the state yesterday following the restoration of the excise tax on gas sales that had been suspended three years ago.

"Frightening," was the first word Frank Perkins of Hawai'i Kai used to describe the higher gas costs.

"Those are the ups and downs. I would love to spend money other ways, but it's not life threatening. That's the way it goes."

Hawai'i drivers, already the paying the highest cost in the country, saw prices rise by 10 cents per gallon or more yesterday. Gas prices have been rising in recent weeks and yesterday's reimposition of the general excise tax pushed prices even higher. The tax equates to 12 cents a gallon at current gas prices.

"Guess I should have gotten gas yesterday," said Susan Buck of Kahala while getting gas at the Kahala Shell, where the price for a gallon of regular rose 17 cents a gallon overnight. "I knew it was going to go up, and I didn't quite think that through."

Buck has four members in her family, and each person has a car.

"The four in our family at 12 cents a gallon on four separate cars? It starts to make an impact," Buck said.

Honolulu resident Nate Smith said rising gas prices inspired his family to buy a Prius hybrid. "That's why we bought this," Smith said. "I almost forget to fill it up. We are very lucky to not have to worry about it."

State officials in 2006 placed a general excise tax moratorium on gas sales when the requirement that gas include 10 percent ethanol raised prices during a time when gasoline prices were already high. Lawmakers agreed to suspend the tax until June 2009. But now, with the state tax revenues falling, lawmakers decided not to renew the tax break.

"I believe strongly that there is a lot of places to decrease spending instead of putting another tax on people," said Bill Green, a former owner and now consultant to Kahala Shell.

"Thanks to the sunset date on the tax, they didn't need to vote it in, just vote to keep it another year or so," Green said. "Just another example of taking the easy way out by the Legislature," he said.

Mark Akerman of Kahala said state lawmakers did what they needed to do to deal with the budget crisis. "What alternatives do they have?" he said.

"Gas is cheaper than it was a year ago and hopefully in six months it will get better. It's a critical situation the state's in and as the economy improves so will the prices."

Madeleine Snow, owner of Kahala Shell Auto Care Inc. said the timing of the tax restoration was unfortunate.

"It came at a time when the price of gas is high. But I would have been surprised if (legislators) had said, 'Let's continue this tax (exemption) to help out the consumer.' They need the tax revenue."

Kahala Shell raised its price from $3.07 a gallon on Tuesday to $3.24 yesterday.

Competition has as much to do with pricing as costs, Green said. "We check twice a day to see what everybody else is doing."

"If the guy down the road went up 10 cents, I'll go up a little, but if he went up 2 cents or 3 cents, I have to stay," Green said.

"I've been doing this 45 years, and I still don't know what (the exact taxable amount) is," said Bob Swartz, owner of Chevrons in Windward O'ahu and in Nu'uanu.

Swartz said the excise tax is just one of many that consumers and retailers pay for with each gallon and consumers should brace for higher costs in the future and not be dependent on a set number.