Hawaii Sets Caps on Wholesale Gas Prices

[Joanne98]

Hawaii Sets Caps on Wholesale Gas Prices

By AUDREY McAVOY
The Associated Press
Thursday, August 25, 2005; 4:18 AM

HONOLULU -- In an effort to gain some control over what motorists pay at the pump, Hawaii on Wednesday became the first state in the U.S. to set caps on the wholesale price of gasoline.

The 2004 law authorizing the caps was intended to force Hawaii's two refiners, Chevron Corp. and Tesoro Corp., to set their wholesale prices closer to mainland rates. Proponents of the law said the refiners were taking advantage of the small, isolated market to charge exorbitant prices.


But industry officials and analysts said Hawaii, whose average retail gasoline prices are the highest in the country, now runs the risk of becoming less attractive to suppliers, raising the possibility of supply problems down the road. However, some analysts gave the state credit for developing a pricing model that takes market forces into account.

The state's Public Utilities Commission said Wednesday that, beginning Sept. 1, wholesalers in Honolulu may not charge more than $2.1578 a gallon for regular unleaded, or about $2.74 a gallon when taxes are included. The commission set the caps, which will fluctuate from week to week, at different levels for other islands.
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/25/AR2005082500219.html

Now we're talking. Watch the CHRISTIANS oppose this.

[blurp]

1. The fact the Nixon did something similar should tell you something

The next step is gas shortages.

Nearly always happens when price controls come into effect.

Those that don't learn from history are doomed to repeat it.

[ClintonTyree]

2. Hey, someone has to take a stand............

I wonder if any mainland States will do the same? I doubt it, there's not too many people that want to take on the extortionist energy companies. bush would be happy as a lark to see oil go to $80 a barrel by the holidays. Maybe he could buy another pig farm and take more vacations (if that's possible) clearing brush.
Kudos to Hawaii! Will anyone in the mainland states have the guts to follow suit?