Gas average may top $2.70 with latest rise in cap
Advertiser Staff
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The state Public Utilities Commission said the wholesale gas cap will be increased by 6.54 cents next week.
The increase follows a jump last week of a little more than 7 cents and comes as crude oil prices edged higher because of colder winter weather on the Mainland and increased demand for gasoline.
The price increase will put the price ceiling at its highest level since Nov. 6. The price ceiling, to take effect Monday, limits how much wholesalers and distributors can charge.
Service stations aren't regulated and are free to set their own prices at the pump, though generally the retail rates have been following the movements of the wholesale cap up and down. Prices at the pump likely will be about 74 to 82 cents higher than the cap, after taxes and dealer markup are added.
Hawai'i's retail gasoline prices are the highest in the nation. State legislators enacted the gas cap law, the only one in the country, saying prices consistently rose in the state but rarely fell when Mainland prices dipped.
The statewide average retail price for a gallon of regular was $2.642 on Tuesday night, according to the American Automobile Association. The national average was $2.183.
Following are the new wholesale price limits.
The cap is computed using wholesale prices from New York, the Gulf Coast and Los Angeles.