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Lawmakers Propose Changes To Gas Cap

Senate Democrats Say Proposals Could Cut Costs By 16 Cents

POSTED: 4:27 pm HST January 24, 2006

Senate Democrats proposed some changes to Hawaii's current gas cap law. They said the changes will slash the price of gas an additional 16 cents a gallon.

The ideas come at the same time the governor and some House Democrats are calling for a repeal of the gas cap.

Hawaii's gas cap has been in effect for six months. However, it has been surrounded by controversy.

"I don't think it's right. I think the business should be left alone, this is causing our gas prices to go even higher," Aiea resident Steve Shishido said.

However, attorney Paul Devens and others want to give the cap more time.

"It's an attempt made in good faith. Maybe we had just better let it go and give it a chance," Devens said.

Senate Democrats are proposing some changes such as adding Singapore to the market averages on which the cap is based. Hawaii's cap on wholesale gasoline prices is based on a five-day average of prices in New York, Los Angeles and the Gulf Coast.

Other proposals include eliminating the 6.5 cents a gallon Oahu zone adjustment and establishing a flat tax of 8 cents a gallon on gas instead of the current pyramiding excise tax.

Senators said those savings could be up to 16 cents a gallon.

"That's an additional 16 cents per gallon savings that consumers would realize if all of these amendments were adopted," Sen. Ron Menor said.

Albert Chee of Chevron said any attempt to amend the gas cap just shows what the experts have said all along: The plan will not work.

"They are trying to do what they failed to do before, which is to severely damage the oil companies," former Kahala Chevron owner Bill Green said.

The governor is eager to repeal the gas cap this year.

There is also a move among Democrats in the state House to get rid of the gas cap. Tweleve of them signed a bill to repeal the gas cap.

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