The national average price for a gallon of regular gasoline over the past week dipped below the year-ago price following a spike that peaked in June and has been gradually subsiding since then.
Hawaii’s average, as usual, is lagging the trend. But badly.
The statewide average price on Friday — $5.17 a gallon — was still 83 cents higher than it was a year earlier, according to the AAA Gas Prices website.
More than half of all states have enjoyed average prices that were lower last week than they were a year ago, and the national average was down 2 cents from a year ago, at $3.32 Friday.
Of the 23 states that still have higher average prices than a year ago, the biggest difference was Hawaii’s 83 cents. The next biggest difference was in Nevada, where a gallon of regular gas was 44 cents higher than it was a year ago.
Among the 27 states with lower year-over-year average prices, Colorado had the biggest drop at 33 cents, to $3.05 from $3.38.
The cheapest gas by state was Texas at $2.75 per gallon as of Friday, which was down 18 cents from $2.93 a year earlier.
Even among some high-price states Hawaii is lagging.
For example, the average price in California on Friday was 8 cents less than it was a year ago, or $4.60, compared with $4.68.
In July California’s price was the highest in the nation followed by Hawaii. Now, Hawaii is back on top at $5.17 compared with $4.63 for California.
AAA said in a report Thursday that California had the largest one-week price decline, falling 28 cents, while eight other states had one-week declines of at least 20 cents. Hawaii’s one-week decline through Thursday was 2 cents.
“It’s always been like this. Since I was born it’s been like that,” said 80-year-old Honolulu resident Ralph Akutagawa on Friday. “To me (gas companies) are just ripping us off. They’re taking advantage of us. What can we do? We’re on an island.”
Oil industry analysts have long said that Hawaii gas prices typically go up fast but then come down slowly in response to offshore market effects because of the state’s geographic isolation, small market size and not much wholesale competition.
David Hackett, president of California-based transportation fuel consulting firm Stillwater Associates, which analyzed Hawaii’s gas market for state government officials about 20 years ago, in a July interview described Hawaii gas prices as “very sticky on the downside.”
Major increases in U.S. gas prices this year began to appear in February amid tension between Russia and Ukraine that resulted in war and a destabilized global energy market.
AAA said in recent reports that lower demand for gas and lower oil prices amid fears of a global recession have been factors pushing down prices at the pump over the past few months.
Hawaii’s peak price was $5.62 a gallon on July 9, or 45 cents more than on Friday, according to AAA.
Among the major metro areas statewide, Honolulu had the lowest average price at $5.14, followed by Hilo at $5.19 and Kahului at $5.25. The average for Lihue was $5.53.
Adsen Bright, who was filling up his Scion xB on Friday in Hawaii Kai, said he routinely uses a neighborhood gas station for convenience and doesn’t even pay attention to what the price is.
“We know it’s bad,” he said. “Whatever the price is, that’s what we’re paying.”
HAWAII GAS PRICES
Price per gallon of regular as of Friday
Statewide average: $5.17
Year-ago average: $4.34
National average: $3.32
Year-ago average: $3.34
MAJOR METRO AREAS
Honolulu: $5.14
Hilo: $5.19
Kahului: $5.25
Lihue: $5.53
Source: gasprices.aaa.com
