A law that limits the wholesale price of
gasoline in Hawaii is set to go into effect next month, making it the first
state in the nation to limit prices.
The original version of the bill included diesel in the price cap, but
dropped the provision in the final version.
On Sept. 1, the new law will limit wholesale
gasoline prices at just under $2.16 a gallon. Combined with the state’s 59-cent
gas tax, the pre-retail price per gallon of regular unleaded will be $2.74.
According to The Associated Press,
retailers typically charge a 12-cent-per-gallon markup, bringing the total cost
per gallon for consumers to $2.86.
Hawaii lawmakers originally passed the bill,
SB3193, in 2002, with an effective date of July 2004. However, the start date
was pushed back 14 months to September 2005 to further study its impact
and make adjustments.
The amended price-cap formula is intended to ease Hawaii’s inflated gas
prices by tying the prices to a weekly national average instead of a West Coast