Efforts to lower Hawaii gas prices snarl

Efforts to lower Hawaii gas prices snarl

	Published : Wed, 24 Jan 2007 08:27 By : Agencies Print this Story

HONOLULU (AFX) - More than eight months after Hawaii suspended its first-in-the-nation cap on gas prices, the latest attempt to lower motorists' bills is stuck in neutral.

Under the law passed in the waning hours of the 2006 legislative session, Hawaii's two oil refiners are required to periodically disclose the number of gallons sold, the wholesale fuel prices they charge, their operating expenses and their profit margins.

The idea was that lawmakers could come back this year and use the information to make more effective regulations to bring down pump prices for consumers.

Only after the government finds out whether the oil industry is gouging customers will it be able to decide how to bring prices down, said Rep. Hermina Morita, a Democrat.

Previous efforts, such as the state-mandated gas price controls, failed in part because no one could determine a fair price without the data.

But as lawmakers opened the 2007 session last week, there's no indication whether this year will bring much relief other than a possible reinstatement of an 11 cents per gallon tax break for ethanol-blended gasoline that lapsed Jan. 1.

Democrats accuse the state's Republican governor of protecting oil interests. The governor's administration has blamed lawmakers for not funding the project. And regulators say they need more time.

Meanwhile, state motorists continue to pay the highest pump prices in the nation -- an average $2.90 for a gallon of regular on Tuesday, according to AAA's fuel gauge report.

'The consumers of Hawaii would like to see some relief from gas prices,' said state Sen. Ron Menor, a Democrat who has led the fight for fuel regulation.

But the two refiners, Chevron and Tesoro, are balking at revealing sensitive information, which means the government must find a way to publish its analysis of the oil companies without compromising their business practices.

'It's really complicated,' said John Tantlinger, of the state's Department of Business, Economic Development and Tourism. 'It's a big project, a big effort and it's very worthwhile.'

The law calls for the refiners' information to go to the Public Utilities Commission. The commission has been negotiating with a company that would create a database to analyze gas pricing information, and it has hired an economist, said chief researcher Lisa Kikuta.

'We are mindful of the desires of the lawmakers and consumers who would like to see this information and some analysis done sooner,' Kikuta said. 'It hasn't come together as quickly as some people would like.'

There are many reasons for the delay.

The Legislature gave the commission only $1 to collect and analyze the oil companies' pricing information. The only other funds available for the project came from a $316,000 interagency transfer. The commission hasn't specified exactly how much money it needs for the analysis, Kikuta said.

Some lawmakers accuse Republican Gov. Linda Lingle of bowing to pressure from the oil companies in opposing the gas cap and not pushing harder for more openness on pricing.

Lingle's office dismisses those arguments, saying the gas price transparency efforts are moving forward with her 'wholehearted support,' said spokesman Russell Pang.

Representatives for the oil companies say they support educating consumers, but they are concerned that the law could require too much proprietary information.

'It's not clear to us where this is all heading,' said Chevron spokesman Albert Chee. 'Some of the information that they are asking for is very sensitive.'

Tesoro spokesman Nathan Hokama said he doesn't have a problem with continuing to provide the state with basic information, but he said additional disclosures could endanger the industry.

'Even if we did provide the state all the information that's required of us, what would they do with the information?' Hokama said. 'For a free market, attempting to regulate or control profits would be very arbitrary.'

For now, the Public Utilities Commission will keep collecting the basic pricing information required under Hawaii's defunct gas price cap law before asking for more data, Kikuta said.