PROTECTING CONSUMERS & BUSINESSES BY ADVOCATING FOR FAIR & REASONABLE GASOLINE PRICES

Hawaii’s consumers and businesses have been paying the highest gasoline prices in the nation. Economic evidence showed these high prices were primarily the result of excessive profits for oil companies and less attributable to transportation and refining costs. Uncompetitive conditions in Hawaii’s gasoline market allowed oil companies to dictate prices and make excessive profits at the expense of Hawaii’s consumers and businesses.

During the 2002 legislative session, the State Legislature passed Senate Bill 2179 to address uncompetitive conditions in Hawaii’s gasoline markets.

This legislation will do the following:

• set maximum wholesale and retail gasoline prices according to a West Coast index;
• implement the program over 4 years to allow adequate study of market conditions; and
• ensure Hawaii’s consumers and businesses fair and reasonable prices at the pump.

As chair of the Energy and Environmental Protection Committee, I helped passed this bill because:

• economic evidence compiled by the Attorney General clearly showed oil companies exploited Hawaii’s uncompetitive markets to make excessive profits

• gasoline is a critical resource in Hawaii’s economy so inflated prices are a drag on economic activity

• the bill allows for ample time to study market conditions and determine the best policy

• the bill contains safeguards to protect small business such as gasoline dealers; and

• the bill will not lead to gasoline shortages.

This legislation was a major step towards ensuring a fair and reasonable gasoline price for Hawaii’s consumers and businesses. My colleagues in the State Legislature that supported this bill and I believe this measure was an important action to take to promote and protect the welfare of Hawaii’s citizens from large corporate self-interests.

District 14, East & North Kauai

OTHER ARTICLES IN POSITION PAPERS SECTION

Bottle Bill
Land Banking
Renewable Energy
Gasoline Pricing
Hydrogen
State Parks Funding
Education