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CA Gas Price Tops Hawaii | Oil Watchdog

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CA Gas Price Tops Hawaii

CONTACT:By

Mon, Mar 17, 2008 at 1:44 pm

    CA Gas Price Tops Hawaii

    NEWS RELEASE – Contact: Judy Dugan, 310-392-0522, x 305 (cell: 213 280-0175), or Jamie Court, x 327 

    Californians Say Aloha (in the Bye-Bye Sense) to Their Savings — State Gasoline Price Tops Hawaii

    California’s Record Pump Price is $3.634, Usual Leader Hawaii Drops to $3.62 — Group Praises Hawaii Effort to Expose Profits

    Santa Monica, CA — In a reversal of the usual gasoline price pattern,
    the isolated market of Hawaii now has cheaper gasoline than California,
    said the Foundation for Taxpayer and Consumer Rights. In addition,
    Hawaii’s Legislature is proposing to require that oil refiners open
    their books on their costs and profits, a move that FTCR has long
    advocated in California and nationally.
     
    While Hawaii dropped a little to $3.62 a gallon today for regular,
    California hit another daily record at $3.634, per AAA. In addition,
    because of its “hot fuel” law, Hawaii compensates for its high gasoline
    temperatures by selling a slightly larger gallon at the pump. The total
    difference is more than a nickel a gallon, said FTCR (see details
    below).
     
    “When Hawaii’s gasoline price drops below California’s, it’s a signal
    that prices are separating from reality in the U.S. West,” said Judy
    Dugan, research director of FTCR and its OilWatchdog project. “Crude
    oil prices have started dropping and the national average gasoline
    price eased a fraction of a cent on AAA today, but there’s no signal
    yet that Western gasoline prices will follow.”
     
    Even in Washington State, which uses plain regular gasoline instead of
    a clean-air formula, and also has lower gasoline taxes, the price per
    gallon is a record $3.528, noted FTCR.
     
    Hawaii legislators are at least taking action to control the usual
    spring runup in gasoline prices and refinery profits, said FTCR. The
    Hawaii legislation (SB 2630) has passed the state Senate and is being
    considered in the House, reports the Honolulu TV station KHON (Click here to view print version of story.)

    The bill would require nearly every segment of the state’s refining
    industry to disclose the cost of doing business in Hawaii. Oil and gas
    companies would be required to file a report every six months on  such
    items as the cost of crude oil, refinery operating expenses, marketing
    operating expenses, and corporate overhead.
     
    “The oil industry is lobbying furiously against Hawaii’s proposal, but
    it’s nothing more than a little sunshine on the dark hole of gasoline
    pricing,” said Dugan. “California lawmakers caved in to oil industry
    pressure last year and failed last year to pass a much milder version
    of a disclosure bill. They owe it to California’s stressed-out
    motorists to do it this year.”
     
    Hawaii’s retail gallon of gasoline is larger than in the rest of the
    U.S. because of the state’s “hot fuel” law. Hawaii is warm year-round,
    and so is gasoline sold in the state, averaging over 80 degrees.
    Gasoline expands and loses energy as it heats up. Hawaii requires a
    gallon slightly more than 1% larger than the U.S. standard, a
    hypothetical  “60-degree” gallon.
     
    “In reality, Hawaii’s gasoline is more than a nickel cheaper than
    California’s, because drivers are already getting four cents extra
    worth of gasoline in each gallon,” said Dugan. “No wonder oil companies
    and marketers are so opposed to giving motorists in California and
    other warm states a fair measure of fuel by compensating for fuel
    temperature on retail sales.”
     
    See OilWatchdog.org for more information on hot fuel and efforts to stop the ripoff.

    FTCR and OilWatchdog have also called for:
     
    – Swift action to close the Enron Loophole in commodity trading
    regulation. A regulatory measure in the federal farm bill (S.2058 by
    Sens. Dianne Feinstein and Carl Levin) would help stop speculative oil
    pricing. (Click here to see more on Enron Loophole and farm bill amendment. )  

    – Senate approval of an alternative fuels bill funded by withdrawing
    $1.8 billion a year in unjustified taxpayer subsidies to oil companies.
    This measure, passed by the House, faces an uncertain future in the
    Senate. A similar House measure was removed from the federal energy
    bill by the Senate last year under pressure from the oil lobby. (Click here to see text of HR 5351.

    – Statements of intent by the presidential candidates. Today’s
    presidential candidates must do more than make disapproving noises
    about today’s energy crisis, said OilWatchdog. They must let voters
    know how they plan to keep the oil lobby out of the White House and
    stop this from happening again.

    – 30 –

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