HONOLULU -- The company that runs 54 Union 76 gas stations in the state said that proposed changes to the gas cap law could put them out of business. However, the senator who is shepherding changes to the controversial law said the company is once again trying to scare consumers to protect its huge profits.

Gas prices on Oahu are more than $3 a gallon for regular unleaded and higher than $4 a gallon on Lanai. So everyone's interested in what lawmakers will do to try to lower prices.

Don's Makiki gas station at the corner of Beretania and Keeaumoku Streets is one of 34 gas stations owned by a company called Mid Pac Petroleum. Mid Pac supplies gas to 54 stations across the state. The company's president is worried that an effort to suspend the state's wholesale gas cap will have a bad effect.

"The net result of that, of course, is going to be that we're going to see gas stations closed down. We're going see the loss of a whole channel of trade in the Hawaii market," said Richard Parry, of Mid Pac Petroleum.

One proposal being considered by state lawmakers suspends the gas gap unless wholesale gas prices rise above a newly-calculated cap for two weeks straight. Then, wholesalers would be forced to reduce the price they charge dealers by more than 16 cents a gallon.

"There is not 17 cents a gallon to be taken out of the wholesale margins. It's just not there," Parry said.

"The company is not credible and believable," Sen. Ron Menor said.

Gas cap architect Menor chairs the Senate Consumer Protection Committee. He said the company is using the same scare tactics it used when the gas gap was originally debated.

"They said if we implemented our pricing regulation, there would be serious supply shortages, severe supply disruptions, gas station and refinery closures, and of course these have never materialized," Menor said.

"Mid Pac Petroleum could be one of the casualties of a badly thought through and misunderstood law," Parry said.

Menor said Mid Pac Petroleum is spreading misinformation in an attempt to continue making a lot of money.

"The pricing regulation is forcing them to cut their prices and to reduce the massive profits that they've been earning. And so they're just looking after their bottom line," Menor said.

The gas cap changes are going to conference in the next few days. That's when state House and Senate negotiators sit down and try to work out the differences in their proposals. Their decisions will have an effect on how much motorists pay at the pump.