Despite low gas prices throughout the country, Hawaii drivers are paying a little more to fill up compared with this time last year.
“Unexpected outages” at an oil refinery in California caused gas prices in Hilo and throughout the state to temporarily increase, said Patrick DeHaan, senior petroleum analyst at GasBuddy, on Monday.
A gallon of regular unleaded gas in Hilo averaged $3 Monday, up from $2.90 a year ago, according to the AAA Fuel Gauge Report.
The report doesn’t track Kailua-Kona prices, though several West Hawaii stations posted prices between $3.18 and $3.19 Monday, according to GasBuddy. Statewide, the average price was $3.05, up from $2.80 a year ago.
Nationally, the price at the pump was an average of $2.26 Monday, one of the lowest June averages in about 12 years. Gas prices generally increase in the summer months because of higher demand, as well as a switch from winter-grade to summer-grade fuel, which is more expensive to produce.
“Whenever there’s a refinery problem … it affects the entire region,” DeHaan said. “That’s led gas prices in Hawaii to be a little higher than other places. The good news is the refinery issues have been dealt with, but unfortunately it does take time for gas prices to resemble what you consider normal … it doesn’t all happen in one day or even one week. … Unfortunately, (Hawaii) won’t have the gas party the rest of the country will be seeing.”
The price uptick hasn’t gone unnoticed by Mountain View resident Tommy Young, who said Monday that spending more on fuel generally means less driving.
“They’re a little high,” Young said about current gas prices as he fueled up at the newly re-branded Texaco station near Kawailani Street. “I’m hoping and wishing they go down. I live in Mountain View, and when prices are high, you don’t come into town as often. You try to conserve.”
Hawaii drivers could still be getting a deal.
In January, a few months after OPEC announced plans to cut oil production, DeHaan predicted gas costs could hit $3.50 per gallon in Hawaii and reach three-year highs nationally.
Oil prices have since dropped. DeHaan said Monday if “nothing else flares up,” Hawaii drivers can expect a gradual gas price drop in the coming weeks. Prices should then remain in the “$2.75 to $3” range for the rest of the summer, he said.
“Right now, closer to the higher end of that, but then expect more relief come the fall,” DeHaan said. “In September, October, November, demand goes down, there’s the switch to the cheaper winter grade, and prices should conceivably drift lower into the mid-$2 by those months.”
Email Kirsten Johnson at kjohnson@hawaiitribune-herald.com.
