WAILUKU, Hawaii -- Hawaiian motorists—as well as those in several other states—were among the first in the nation to see the advent of much-anticipated $4-per-gallon regular unleaded gasoline. Reports of $4 price sightings also began popping in a few other parts of the country late last week.
In Hawaii, Maui is on the verge of becoming the first area in the nation to average $4 for a gallon of regular unleaded, said the Associated Press. The average price in Wailuku reached $3.934 on Thursday, the highest price in AAA's Daily Fuel Gauge Report. At several stations, it was a [image-nocss] penny shy of $4. In the remote coastal town of Hana, it was around $4.40 a gallon.
Hawaii is the most oil-dependent state in the nation, with more than 90% of its energy coming from imported oil, according to AP. The state's economy is also extremely sensitive to oil prices globally because it depends on airplanes and ships to bring in tourists and all of its goods.
Marie Montgomery, spokesperson for AAA Hawaii, told AP that it is a little comfort for islanders that gasoline prices have not risen as fast as in other states, such as California.
On Thursday, California hit another record with an average of $3.609, overtaking Hawaii ($3.587) for the nation's highest gasoline prices. A few stations are already posting $4. Meanwhile, the national average has risen to a record $3.267, according to AAA. But Maui, which doesn't have a major public transportation system, now has all the California cities beat by at least a quarter a gallon.
Residents here have long wondered why gas prices on the island are so much higher than on neighboring Oahu, where Honolulu gasoline is about 50 cents less.
Hawaii, which imports most of its crude oil from Alaska and Indonesia, has two refineries on Oahu operated by Chevron Corp. and Tesoro Hawaii Corp. Both companies blame the Maui price on higher transportation costs, even though islands further away, such as the Big Island, have lower prices. They also cite several other factors, such as volume, competition and higher local taxes on Maui.
Chevron spokesperson Albert Chee told AP that the price, in most cases, is set by the station operators and owners. The company sets the retail prices for only six stations it owns out of the 63 Chevron-branded outlets in Hawaii. The company would not disclose the difference in wholesale price between Maui and Oahu; however, Chee said: "It's not 50 cents. It's not even half."
He said, "The difference between Oahu and Maui of 50 cents is not flowing into my pocket."
Chevron noted that the cost of crude oil has spiked 20% in the past 30 days, while gasoline has increased 9% nationwide and only 5% in Hawaii.
Meanwhile, the price of regular unleaded gas topped the $4 a gallon mark on Friday at three gas stations in Hendricks County in Indiana, reported the INDYchannel.com. Two Marathon stations and a Speedway station along U.S. 36 in Danville had prices at the pumps of $4.09 on Friday afternoon. The Speedway station later lowered its price to $3.43 a gallon, which is in line with prices at stations in other parts of central Indiana.
In recent months, Indiana has gone from having gasoline prices below the national average to consistently being about 20 cents above the national average, said the report.
New online gasoline price module Tinbu.com, which claims to cover more than 140,000 U.S. gas stations, noted $4 or higher gasoline in California, Florida, Hawaii, Indiana, Michigan and Washington on Friday.
CSP magazine's extended coverage of the volatile fuel-pricing environment began with a February cover story. Look for more features examining the effect of $110-per-barrel crude on the petroleum distribution system and consumer demand in the May and June issues.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.