Hawaii gas
prices fell
4% in ’98

National prices dropped
15% during the year

By Rob Perez
Star-Bulletin

Hawaii gasoline prices fell about 4 percent this year, well short of the 15 percent decline nationally, according to two pricing surveys.

From January to December, the average price of regular unleaded at self-serve pumps statewide dropped from $1.659 a gallon to $1.584, a 4.5 percent decrease, according to AAA, the national travel company.

Nationally, the regular unleaded price fell from $1.15 in January to 97.54 cents this month, a 15.2 percent plunge, according to the Lundberg Survey, which regularly tracks prices across the country.

The smaller decline locally came as the state in October sued most of Hawaii's major gas wholesalers, accusing them of conspiring to keep prices artificially high.

The industry has vigorously denied the charges.

While Hawaii motorists and gas station dealers have seen relatively little benefit from dramatic drops in crude oil prices the past two years, some local customers have been more fortunate.

Federal government agencies, for instance, have seen gas prices charged by their local suppliers drop significantly, mainly because those prices are pegged to mainland benchmarks. Likewise, the price of other petroleum products produced by Oahu's two refineries have declined at much greater rates than the wholesale gas prices to dealers.

That has further fueled accusations of price gouging by the wholesalers.

The state's $500 million lawsuit is expected to take years to resolve.