Hawaii gas prices surge

HONOLULU - Hawaii gas prices jumped by double digits this week, adding as much as 14 cents per gallon in the state that already had the most expensive fuel in the nation.

The gas price hike came because state lawmakers failed to extend a general excise tax exemption for ethanol-blended fuels. The tax break lapsed Wednesday.

Hawaii gas prices averaged $3.20 per gallon Thursday, far above the national average of $2.63, according to AAA's Fuel Gauge Report.

Hawaii drivers say they were shocked at how high prices have climbed.

"Guess I should have gotten gas yesterday," said Susan Buck of Kahala at the pump at the Kahala Shell, where the price for a gallon of regular unleaded rose 17 cents a gallon. "I knew it was going up, and I didn't quite think that through."

Others said the increase in prices wouldn't change their driving habits.

"I don't really pay attention to it cause I gotta put in gas," said Gina Fukumitsu of Manoa.

Deryl Seino, who paid $3.19 a gallon to fill up his SUV at Lex Brodie's in Honolulu, said the price hike didn't faze him.

"It fluctuates. That's why I don't even pay attention anymore," he said.

Average prices were $3.43 in Wailuku, $3.26 in Hilo and $3.12 in Honolulu, according to AAA.

A law passed in 2006 placed a moratorium on imposing the general excise tax on ethanol-blended fuels. The law expired Wednesday — the start of the new fiscal year — because it wasn't renewed by the Legislature earlier this year.

The state Tax Department has said the reimposed tax would generate an additional $40 million for the state treasury.

"I believe strongly that there is a lot of places to decrease spending instead of putting another tax on people," said Bill Green, a former owner of and now consultant to Kahala Shell. "Just another example of taking the easy way out by the Legislature."

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On the Net:

Fuel Gauge Report: http://www.fuelgaugereport.com/

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