The four-month decline in gasoline prices reached a new low yesterday, as one retailer set the price below $2 a gallon.

Gas Drops Below 2 Dollars

 

A welcome sight for drivers who lined up at the Iwilei Costco for cheap gas.

 

[ Watch ]

 

 

 

 

  Regular unleaded was selling for $1.95 a gallon at Costco stores on Oahu, a drop of 9 cents from the day before.

The last time any single retailer was selling fuel below the $2 mark is unknown, but the last time the Honolulu average was under that level was Aug. 22, 2003, according to the Department of Business, Economic Development and Tourism.

Although average prices in the state and in Honolulu were still well above the national average, Hawaii prices have fallen every week since reaching record highs over the summer.

Yesterday's statewide average of $2.53 a gallon was second highest in the country, behind Alaska's $2.73 a gallon, and well above the national average of $1.68 a gallon.

The Honolulu average was $2.43 a gallon, while the highest-priced gas in the islands was on Maui, at $2.89 a gallon, according to AAA's Fuel Gauge Report. The Hilo average was $2.55 a gallon.

Little is known about exactly how Costco is able to keep prices significantly lower than other local retailers.

Costco officials at company headquarters in Issaquah, Wash., have rebuffed past attempts by the Star-Bulletin seeking comment.

Some in the industry have speculated that the wholesaler sells gasoline at a loss to drive up membership and bring shoppers into the store, although corporate officials have refuted such speculation.