HONOLULU -- Three oil companies have asked that implementation of Hawaii's gasoline price cap law be delayed so more work can be done to determine its effect on the economy and consumers, reported the Honolulu Star-Bulletin.
Shell Oil Co., Tesoro Hawaii and Chevron USA filed papers Friday with the state Public Utilities Commission (PUC), saying they also need more time to determine how the law's stipulations will be affected by an April 2006 mandate for Hawaii's gas to be blended with ethanol, said the report.
The PUC will make [image-nocss] a ruling on the law's implementation before it goes into effect September 1.
"This delay would allow more time for the administration, legislature and PUC to further analyze the potential impacts of the proposed price cap mechanism," wrote Chevron in an 87-page position statement to the commission, which also included stinging critiques of the law, according to the newspaper.
"We also recommend," Chevron continued, "that the state re-examine the current gasoline market in the context of an excessive regulatory environment and, rather than implement laws that interfere with the normal operation of the market, it develop policies that would help refiners and marketers reduce costs and further the competitive operation of the market."
Kris Nakagawa, chief legal counsel for the commission, said he was still sorting through the documents and could not comment on their contents. Commission members "will consider all of the positions presented by the parties and then make a decision," he told the paper.
The law requires the commission to set a maximum pretax wholesale price at which gasoline can be sold in Hawaii based on the weekly average of spot prices in different parts of the nation.
In addition to asking for a delay, the oil companies called on politicians and the governor to repeal the law. Governor Linda Lingle has been a staunch opponent of a price cap and has introduced proposals in the House and Senate to have the law repealed, the report said.
But State Senator Ron Menor, co-chairman of the Senate Consumer Protection Committee, has said he would deny a hearing for any such bill in the state Senate.
State Division of Consumer Advocacy Executive Director John Cole said in documents filed Friday that the commission could consider implementing the gasoline price cap law, but not enforcing its consequences for nonadherence in the short term, said the report. That would allow economists to determine the law's effect on the economy, Cole said, without penalizing oil companies that are not ready or able to comply.
The Hawaii Petroleum Marketers Association, which also filed documents with the commission, called for a similar setup "until a better understanding of the law is known," and also made recommendations on how the gasoline price cap should be calculated, the paper said.
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.