Gas Cap Law
Encyclopedia
The Hawaii
Gas Cap Law is a state law
setting a legal limit
on wholesale
gasoline
prices, or the maximum amount that may be charged for producing gasoline and delivering it to a service station
. Under the law, the gas cap is set weekly by the Hawaii Public Utilities Commission
(PUC) based on average spot price
s for regular unleaded gasoline in three U.S. markets, New York Harbor
, the Gulf Coast, and Los Angeles
.
The gas cap has a baseline price that is the same throughout Hawaii, but the total wholesale price varies depending on seven zones, reflecting the differing costs of delivery to various locations throughout the state.
(in office, 2002-2010) signed a bill suspending the gas cap law. The bill allows Hawaii's governor to reinstate the gas cap law at any time. The suspension of the law is expected to increase profits for oil companies but the impact on gasoline prices is uncertain.
Hawaii
Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of...
Gas Cap Law is a state law
State law
In the United States, state law is the law of each separate U.S. state, as passed by the state legislature and adjudicated by state courts. It exists in parallel, and sometimes in conflict with, United States federal law. These disputes are often resolved by the federal courts.-See also:*List of U.S...
setting a legal limit
Price ceiling
A price ceiling is a government-imposed limit on the price charged for a product. Governments intend price ceilings to protect consumers from conditions that could make necessary commodities unattainable. However, a price ceiling can cause problems if imposed for a long period without controlled...
on wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...
gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
prices, or the maximum amount that may be charged for producing gasoline and delivering it to a service station
Filling station
A filling station, also known as a fueling station, garage, gasbar , gas station , petrol bunk , petrol pump , petrol garage, petrol kiosk , petrol station "'servo"' in Australia or service station, is a facility which sells fuel and lubricants...
. Under the law, the gas cap is set weekly by the Hawaii Public Utilities Commission
Hawaii Public Utilities Commission
The Hawaii Public Utilities Commission is a public utilities commission, a quasi-judicial tribunal, which regulates public service companies operating in the U.S. state of Hawaii....
(PUC) based on average spot price
Spot price
The spot price or spot rate of a commodity, a security or a currency is the price that is quoted for immediate settlement . Spot settlement is normally one or two business days from trade date...
s for regular unleaded gasoline in three U.S. markets, New York Harbor
New York Harbor
New York Harbor refers to the waterways of the estuary near the mouth of the Hudson River that empty into New York Bay. It is one of the largest natural harbors in the world. Although the U.S. Board of Geographic Names does not use the term, New York Harbor has important historical, governmental,...
, the Gulf Coast, and Los Angeles
Los Ángeles
Los Ángeles is the capital of the province of Biobío, in the commune of the same name, in Region VIII , in the center-south of Chile. It is located between the Laja and Biobío rivers. The population is 123,445 inhabitants...
.
The gas cap has a baseline price that is the same throughout Hawaii, but the total wholesale price varies depending on seven zones, reflecting the differing costs of delivery to various locations throughout the state.
- (Zone 1) OahuOahuOahu or Oahu , known as "The Gathering Place", is the third largest of the Hawaiian Islands and most populous of the islands in the U.S. state of Hawaii. The state capital Honolulu is located on the southeast coast...
- (Zone 2) KauaiKauaiKauai or Kauai, known as Tauai in the ancient Kaua'i dialect, is geologically the oldest of the main Hawaiian Islands. With an area of , it is the fourth largest of the main islands in the Hawaiian archipelago, and the 21st largest island in the United States. Known also as the "Garden Isle",...
- (Zone 3) MauiMauiThe island of Maui is the second-largest of the Hawaiian Islands at and is the 17th largest island in the United States. Maui is part of the state of Hawaii and is the largest of Maui County's four islands, bigger than Lānai, Kahoolawe, and Molokai. In 2010, Maui had a population of 144,444,...
- (Zone 4) HanaHanaHana as a given name may have several origins. It is a variant transliteration of Hannah, meaning Grace in Hebrew associated with God feminine which is the Jewish and Christian form, as well as an Arabic female name meaning happiness , a Persian female name meaning a type of flower , and a Kurdish...
- (Zone 5) MolokaiMolokaiMolokai or Molokai is an island in the Hawaiian archipelago. It is 38 by 10 miles in size with a land area of , making it the fifth largest of the main Hawaiian Islands and the 27th largest island in the United States. It lies east of Oahu across the 25-mile wide Kaiwi Channel and north of...
- (Zone 6) LanaiLanaiLānai or Lanai is the sixth-largest of the Hawaiian Islands. It is also known as the Pineapple Island because of its past as an island-wide pineapple plantation. The only town is Lānai City, a small settlement....
- (Zone 7) Hilo
- (Zone 8) KonaKona District, HawaiiKona is the name of a moku or district on the Big Island of Hawaii in the State of Hawaii. In the current system of administration of Hawaii County, the moku of Kona is divided into North Kona District and South Kona District . The term "Kona" is sometimes used to refer to its largest town,...
Law suspended
On May 5, 2006, Gov. Linda LingleLinda Lingle
Linda Lingle was the sixth Governor of Hawaii. Lingle holds a number of distinctions: first Republican elected governor of Hawaii since the departure of William F...
(in office, 2002-2010) signed a bill suspending the gas cap law. The bill allows Hawaii's governor to reinstate the gas cap law at any time. The suspension of the law is expected to increase profits for oil companies but the impact on gasoline prices is uncertain.
External links
- Hawaii Revised Statutes 486H
- May 5, 2006. "Lingle Signs Bill To Repeal Gas Cap". KITV News. Accessed August 2011.
- Gas price cap offered by a private firm Petrofix.com