August 25, 2005

Prophesies abound

I just spent $17.75 for gas at $2.82 per gallon. This is just ahead of a gas price cap that's about to be implemented here. Since nobody really knows how this is gonna work, there's all manner of speculation; will the prices go up, go down, stay the same? The cap is supposed to be reset every week based on wholesale prices on the mainland in three different locations, but how fast will the station owners respond each week?

The wholesale cap is set by taking average prices in various Mainland markets and adding a margin to account for the costs of shipping, distributing and marking gasoline in Hawai'i. The caps are supposed to provide oil companies with acceptable profit margins.

Should be interesting.

Posted by Linkmeister at August 25, 2005 03:30 PM | TrackBack
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