Gas shortage coming to Hawaii real soon

[keith]

Hawaii First State To Cap Gasoline Prices

"The state Public Utilities Commission is setting the wholesale price ceiling for gasoline in Honolulu at just under $2.16 a gallon. With taxes, the wholesale price would be $2.74. If wholesalers charge that price and retailers keep their typical 12-cent markup, then the price of a gallon of regular unleaded in Honolulu could rise to $2.86 per gallon."

Guess what happens if the wholesale price of gas in Hawaii exceeds their ceiling limit? Nobody will be selling gas to Hawaii because they will be able to get full price elsewhere.

 

[Pablo]

Hawaiistan.

 

[kenw]

So the idiots set an artificial ceiling for an end product, the selling companies decide not to sell at a loss, the end product gets real scarce and it's the big, bad oil companies' fault and the idiots get re-elected!

 

[Jimbo]

Twelve cent markup? Its closer to three cents on the mainland. Anyway, how is gasoline a "Public Utility"? I would think the refiners could just violate the ruling because the PUC has no authority.

 

[PandaBear]

I don't think it would work unless you can call in anti-trust for gas gouging. There are 2 refinery, and if they are not in an agreement to keep the price high, you can't do anything to mandate the maximum price.

Doing so, I fear, will only encourage retailer to stay with the price of the day and discourage competition (guarantee 12 cent markup, why fix the station or improve service if you are near a busy intersection).

Regulation is not the answer here, they don't drive that much and anything to regulate is just a political tool. The highway is only 26 miles in a circle.

 

[ToyotaNSaturn]

quote:

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Originally posted by Pablo:
Hawaiistan.

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[Al]

quote:

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Originally posted by Pablo:
Hawaiistan.

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Hahahahaha..idiot Lawmakers..have no concept of the free enterprise system=there will be no gas

 

[Drew99GT]

They'll probably enact a law saying the refineries/wholesalers there or anyone else that has sold wholesale gas to Hawaii must continue to do so by law.

 

[Pablo]

Atlas is shrugging....

 

[Drew99GT]

They don't put gas on ships and sell it to other places?

 

[oilyriser]

They should pass a law saying that everyone has a full gas tank, so nobody will ever have to buy gas again.

 

[kenw]

quote:

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Originally posted by oilyriser:
They should pass a law saying that everyone has a full gas tank, so nobody will ever have to buy gas again.

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ever consider running for office?

 

[Mamala Bay]

Tend to disagree. Oil companies has made millions and luv to sell gas here cause it's a no lose situation. Profits like 25% higher after costs comparative to mainland operations!


It's a lot cheaper to produce a gallon of gas here in it's operation...Shipping of crude is the same in USA operation so Hawaii is not more expensive.

In my personal opinion...Greed and corruption...Naw...Oil companies aren't going to lose any money...just less % in profit...

 

[JAYCEE]

They should instead pass a law mandating that all cars run on recycled pineapple juice and coconut shells.

Problem solved!

 

[JHZR2]

every place shouldhave a two-tiered road fuel priing scheme, like they have in the USVI.

tier 1: personal use for all vehicles (including personal use HD trucks, motorcycles, etc)

tier 2: commercial and heavy truck

tier 1 will be full price and tax. If youre rich and can afford your 8 mpg SUV, good for you. Otherwise, better think twice.

tier 2 will cut the freight companies and businesses dependent upon heavy trucks and low mpg vehicles a break. It could also cut taxis a break.

cut a break for those whose lived depend upon fuel being cheap. For the showoffs and people who choose to have high-use vehicles, I dont care...

JMH

 

[PandaBear]

The pitfall of the 2 tier pricing is that many of the big SUV and wasteful cars are owned by small business owner who claims their SUVs and V8 luxury car are for commercial use.

This in effect will benefit them, and hurt the guys down the road who drive a civic, focus, corolla, jetta, etc.

 

[keith]

quote:

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Originally posted by Mamala Bay:
Tend to disagree. Oil companies has made millions and luv to sell gas here cause it's a no lose situation. Profits like 25% higher after costs comparative to mainland operations!

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That's what the free market has determined to be the price in Hawaii. Most everything is more expensive in Hawaii compared to the mainland. Maybe the politicians will regulate all the prices to "fix" that problem too.

 

[kenw]

if the profits are so much higher there, how come the retail prices (earlier post this thread) aren't that different from mainland prices?

 

[Drew99GT]

According to this article, wholesale gasoline shipped to Hawaii would be cheaper than what the refineries sell for there. Granted, the article is quite dated, but interesting non the less. One wholesaler there buys from Asia but charges the same as the locally refined gas.

 

[kenw]

"I don't care if it's gas, Post Toasties or whatever," said Bill Green, a Kahala Shell dealer. "We're always going to be paying 30 to 40 percent more than the mainland."


the price of living in paradise.