State wants PUC to set pump prices

by The Associated Press

The Hawaii Public Utilities Commission would regulate wholesale and retail gasoline prices in Hawaii under legislation proposed by the attorney general’s office.

The proposal was submitted April 19 in the form of an amendment to a Senate bill aimed at reducing pump prices.

Tesoro Hawaii spokesman Nathan Hokama said the company reserved comment until it had time to review the legislation.

The commission would set maximum prices each week, based on prices of regular unleaded gas over the previous five business days in Los Angeles, San Francisco and the Pacific Northwest. Adjustments would be made for the Neighbor Islands.

Manufacturers, wholesalers and retailers who sell gasoline above the maximum prices wold be fined by the PUC.

Those who overcharge would face a penalty of $250,000 or three times the overcharges, plus costs of bringing civil action, whichever is greater.

Gas station lease rent would also be capped under the proposal.

The attorney general’s office investigated gasoline prices for four years before the state reached a $20 million settlement with several oil companies earlier this year.

The Hawaii Department of Business, Economic Development and Tourism and the oil industry have raised concerns in the past over price regulation.