Gas prices in Hawaii are at six-year lows, and experts say that trend could continue — including on the Big Island.
Gas prices in Hawaii are at six-year lows, and experts say that trend could continue — including on the Big Island.
On Tuesday, a gallon of regular gasoline in Hilo averaged $2.53, down from $3.28 a year ago, according to the AAA Fuel Gauge Report. Statewide, the average price was $2.63, a drop from $3.32 last year and the lowest it’s been since May 2008. Nationally, Americans paid an average $1.88 per gallon at the pump.
“Prices are incredibly low right now,” said Allison Mac, petroleum analyst at GasBuddy. “To put that in perspective, when prices were incredibly high in 2013 and 2014, a barrel was well over $100. So when we look at Hawaii, which, even though tends to have very expensive gas prices, it’s still much lower.”
Experts attribute rock-bottom prices to the cost of crude oil, which dropped below $28 per barrel Monday, the lowest it’s been since 2003.
And prices could plummet even lower — below $20 per barrel — some say, in part because Iran is expected to ramp up oil production after sanctions on the country were lifted as part of the nuclear deal it reached with the United States and several other countries.
Big Island residents appear to be enjoying the dip. On Tuesday, there were smiles all around at Chika Nakano Repair Shop Inc. full-service gas pumps in Hilo. Employee Donny Huberit said he’s saved up to $25 per tank filling up his own SUV.
“It’s pretty awesome,” he said. “(Low prices) mean you can really just cruise.”
“I think it should go even lower, more like on the mainland,” a nearby customer added with a grin.
Low prices also affect the price of electricity. In a November news release, Hawaii Electric Light Co. reported its Big Island customers were paying the lowest in monthly electric bills in more than six years, largely because of low fuel prices. HELCO spokeswoman Rhea Lee-Moku could not predict how recent drops might affect bills going forward, but said “the trend we’ve been seeing is lower fuel prices and that benefits the customer.”
“It is welcome news because it has an impact on people’s electric bills,” she said, adding HELCO also is moving toward the state’s goal of 100 percent renewable energy by 2045. “It does decrease the price of electricity.”
Mac cautioned motorists still might see a slight seasonal price uptick starting later this winter, following a switch to summer-blend gasoline — which is more expensive to produce.
“Gas prices are like a roller coaster,” Mac said. “We’re at seasonal lows right now, and people don’t drive as much in the January and February months. But historically, prices drop until the end of January and beginning of February and that’s when they start to uptick.
“But I think overall, comparing day over day, we will be lower than we were last year,” she added.
The AAA Fuel Gauge report does not track Kona gas prices — but GasBuddy showed most stations in Kona reporting prices between $2.77 and $2.85 per gallon Tuesday.
Email Kirsten Johnson at kjohnson@hawaiitribune-herald.com.