Hawaii Gas Cap Law is a legal limit on
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 prices 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.
On May 5
signed a bill suspending
the gas cap law. The bill allows Lingle to reinstate the gas cap
law at any time. The suspension of the law is expected to bring
relief to gasoline station owners but the impact on gasoline prices