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POSTED: Wednesday, November 12, 2008

Nobody needs to remind Karen Matsuyama of Makiki how much she's had to pay per gallon at the pump.

“;$4.58 during the summer,”; she said, pointing to a piece of paper she's used to track gas prices over the past year. “;This is the best it's been.”;

The average for regular gasoline in Honolulu is $3.01 as of today, with many stations selling regular unleaded under $3. The highest recorded average price, according to AAA, was $4.29 for regular gas on July 29.

“;The question is, how long is this going to last?”; asked Matsuyama, who was at Lex Brodie's yesterday morning filling up her four-door sedan with premium unleaded at $3.09 a gallon. “;I guess you can say I'm cautiously optimistic.”;

That's the right attitude to take, said Leroy Laney, a professor of finance and economics at Hawaii Pacific University.

“;Energy prices are highly volatile anyway,”; said Laney, also an economic adviser for First Hawaiian Bank. “;Don't be falsely encouraged by downticks in prices. Over the longer term, prices are going to go back up if the economy recovers.”;

Prices for crude oil have tumbled 60 percent since reaching a record of $145.29 a barrel in July. Yesterday, oil dropped to $59.33 a barrel.

Lower energy prices may provide brief reprieve, especially in light of the upcoming holiday shopping season, Laney said. He said retailers aren't expecting much this holiday season, so the fuel prices should help.

“;This comes at a good time because the economy is quite weak both nationally and locally,”; he said.

“;One of the few silver linings we have are lower fuel prices, even though they're a result of the weak economy.”;

Laney said drivers shouldn't forget the lessons learned in cutting back spending. Rolando Dongon, 34, of Kaimuki, is already factoring in the summer of 2008 with his next car purchase. It'll probably be a hybrid or run on electricity.

“;Ever since it was $4, driving has become one of those things you have to plan for,”; he said. “;It really changed the way I do things, even though prices are going down now.”;

It's even changed driving habits for 62-year-old Charles Hurd, who was among the first in Hawaii to own a Toyota Prius Hybrid. He still drives his 2001 model.

“;Our other car is a Lexus,”; he said. “;My wife and I would skip driving that altogether. When we did drive together, we'd double up on trips.”;

Hurd said he didn't panic, however, when gas prices flew past the $4 mark. He said he figured prices would ease eventually.

But Hurd said he isn't taking any chances. He's already bought his son another hybrid vehicle.

“;And I think we're going to keep this car longer,”; he said, patting his Prius.

Prices at the pump

Prices per gallon of gas in Honolulu:

                                                                                                                                                                                   

	TODAY	MONTH AGO	YEAR AGO
Regular	$3.01	$3.91	$3.19
Premium	$3.17	$4.11	$3.44
Diesel	$4.62	$4.99	$3.73

Source: AAA