How to Price Hawaii's Gas?
Should state follow U.S. or Far East, Caribbean markets?
Published in CSP Daily News
HONOLULU -- The price of gasoline in Hawaii should be based on prices in the Far East and Caribbean rather than onU.S. mainland markets, according to a consultant's report presented to state lawmakers last week, reported the Associated Press.
It was a key recommendation ofICF Consulting Inc. The Fairfax, Va.-based company was hired by the Hawaii Public Utilities Commission to help it implement the state's gasoline price cap law, whichas reported in CSP Daily Newsgoes into effect September 1.
ICF analyzed the Far East and Caribbean [image-nocss] markets from 1999 to 2004. It found that use of those markets to determine the baseline price would have resulted in an 8-1/2-cents-per-gallon lower baseline than the legislature originally recommended usingU.S. mainland markets.
But State Senator Ron Menor (D) said theU.S. markets were considered to be more comparable to Hawaii and more appropriate.