Hawaii caps gas prices well below current levels

[BurgherHoldtheLies]

<snip>
The state Public Utilities Commission on Wednesday released its list of caps on the wholesale price of gasoline, with the price in Honolulu at just under $2.16, setting the stage for gas prices in Hawaii, the highest in the nation, to dramatically fall.

The caps are effective starting Sept. 1, when Hawaii's first-in-the-nation price cap law goes into effect, through Sept. 4.


Prices on Maui have already topped $3 a gallon this week, while Honolulu hit a record $2.76 on Wednesday.

If wholesalers charge the maximum $2.16 under the cap and retailers keep their usual 12 cent per gallon markup, prices for regular unleaded would fall to $2.28 per gallon.

http://msnbc.msn.com/id/9067364/

[Hawkeye-X]

1. Wish the US will follow Hawaii...

I'd love a cap.. and bust a cap on Blowens too.

[oasis]

6. Do you mean that you wish the mainland will follow Hawaii?

;-)

[n2doc]

2. caps lead to shortages and lines

Just watch. If Crude stays high, Hawaii will get precious little oil. Unless the entire oil industry is nationalized/subsidized, caps won't work. And frankly, gas prices need to be higher, not lower-the average Joe just won't think about conservation and the economic price we pay for our dependance on outside oil until it HURTS.

[BurgherHoldtheLies]

3. Interesting.

I don't live in Hawaii but thought this story might be noteworthy for Hawaii DUers.

[Oerdin]

4. Price caps just normally don't work.

Typically price caps just result in shortages of supply as supplies won't sell at a lose and instead will simply move the gas to another market or not import it to Hawaii and will instead sell it in markets they make more money in.

This is the silly old fashioned socialism of the 1970's and it just doesn't work.

[tech3149]

5. My sister will be happy to hear this

Things are expensive enough without gas prices sucking up the rest of your income.

[KamaAina]

7. Amazingly, the cap* may actually cause prices to go up

bear in mind we are No. 42 of 50 in the "Smartest States" ranking...

http://starbulletin.com/2005/08/25/news/index1.html

Preliminary calculations show the cost of gasoline could rise once state price controls on wholesale gas take effect next Thursday, but lawmakers who passed the legislation say they do not believe that will happen....

Say and other lawmakers said they believe oil companies have kept prices lower than they would normally, anticipating that they might be allowed to charge more once the law goes into effect.

"Personally, I would say maybe (they are holding prices down) just to bring it up come Sept. 1 to have a shock wave," Say said yesterday in a meeting with Star-Bulletin editors and reporters....

Oil companies have long faced allegations of manipulating the market in Hawaii to keep prices artificially high. Industry officials say it is Hawaii's remote location, high tax structure and an anti-competitive marketplace that keep prices high.

Oil companies do not manipulate markets so stop saying that! Our patriotic American corporate citizens like Enron would never, ever stoop so low! :sarcasm: