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Gas Prices Plateau at Near-Record Levels

Hawaii Imposes Price Cap

By Joe Benton
ConsumerAffairs.com

August 26, 2005
Gasoline prices have leveled off at record levels and are taking a break from the huge run-up of the last two weeks.

The average price for a gallon of regular unleaded is $2.60, according to AAA of Hawthorne, Fla. That is down a penny from Tuesday, Aug. 23. One month ago, the average price stood at $2.28 a gallon.

The cheapest gallon of regular unleaded gasoline is found this week in Evanston, Wyo., at $2.28 a gallon. The most expensive gallon is found in Kahului, Hawaii, at $3.19.

The Public Utilities Commission in Hawaii has imposed a cap on the price of gasoline. That makes Hawaii the first state in the nation to take government action against rising gasoline prices.

Effective Sept. 1, 2005, Hawaiian wholesale gas prices will be linked to those on the U.S. mainland, with the level of the price cap reset weekly. The initial price cap has been set at about $2.74, inclusive of taxes, or a little lower than the current average retail price of gasoline on the islands, which is $2.76.

The price cap is set on the wholesale cost of gasoline. Hawaiian retailers can raise the wholesale price by $0.12 in order to earn a profit on their sales.

Hawaii has the highest average gas price of the 50 states and supporters of the cap say refiners are jacking up prices because of the state's isolated position.

There are just two refineries in the state. Drivers spend an average of $2.84 for a gallon of regular. Drivers pay less in the big cities and more on outlying islands. Opponents of the price controls warn that the formula which links Hawaii's costs to those in Los Angeles, the gulf coast and New York could end up raising prices.

Around the country gasoline prices are settling in almost everywhere at record highs.

Beaumont is the only city that posted a decrease this week -- down a penny to $2.51 a gallon.

Southern Pines, NC: Record gas prices have many people feeling the pinch.

A quick check of local gas stations and convenience stores showed that gas prices seem to be holding between $2.57 and $2.59 per gallon for regular unleaded.

Prices in Southern Pines and Aberdeen appear to be in keeping with the state average, which is $2.57, according to AAA Carolinas. As of Thursday, it was one cent less than the record state average of $2.58 set Monday. One year ago, the average gas price was $1.82.

Fayetteville currently has an average gas price of $2.58. That city’s average hit a record high of $2.60 on Saturday.

Arizona: Gas prices continue breaking records. Triple-A reported the statewide average for regular unleaded gasoline is $2.62.

That's two cents higher than the national average.

Triple-A said Labor Day travelers could create a marginal, temporary, increase in demand for fuel. However, it said demand should drop after the holiday and that could help ease Arizona gas prices.

San Diego: The average gasoline price in the San Diego area fell after setting a record earlier in the week, but record prices could return soon, the Automobile Club of Southern California reported.

The price is four-tenths of a cent more than last week, 21 cents more than last month and 73 cents more than at this time last year.

In Orange County, the average price per gallon reached a record $2.79 but later fell to $2.77.

Virginia: The average price for a gallon of unleaded gas in Virginia is $2.56 cents. Virginia has set records over 10 times this month and people are asking why prices continue to skyrocket.

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