HONOLULU -- Hawaii drivers might soon have to pay for Hurricane Katrina's wrath at the gas pumps. That's because the state uses Gulf Coast wholesale prices as part of its new gas-cap formula.

Hurricane Katrina has shut down major oil producing facilities in the Gulf of Mexico, damaged refineries and sent oilrigs drifting.

Experts say damage in the Gulf could make Hawaii's prices at the pump jump even higher.

"I would expect them to go higher in the short run mostly as a result of the gas cap formula which forces Gulf Coast prices to affect Hawaii prices," Bank of Hawaii economist Paul Brewbaker said.

(Watch News Report)

Hawaii's gas cap is adjusted each week using an average of Los Angeles, New York and Gulf Coast wholesale gas prices.

Drivers lined up all the way to Dillingham Boulevard on Tuesday to fill up their tanks at Costco to try to beat higher prices.

"Its a volatile market right now. I think everyone is here because they are expecting the prices to go to go up very soon," customer Martha Randolph said.

Long lines at Costco are not new. Officials at Costco in Iwilei said it had its biggest single day of gas sales on Monday since it opened there 2 1/2 years ago.

Proponents of the gas cap say what matters is what happens to gas prices in the long run.

"In this particular case, we are going to see the consequences of an event with higher prices. But, when the event ends and things settle down, we will see their prices drop with the rest of the mainland and get lower prices again," said Frank Young, of Citizens Against Price Gouging.

Gas cap supporters say in the past, Hawaii's prices remained high even when mainland prices dipped.

One gas retailer in Honolulu is hoping to gain new customers because of uncertainties brought on by the gas cap. On Friday, Lex Brodie's said it will offer the cheapest priced regular gas on Oahu.

Brodie's said it will pump cheap gas for as long as supplies last during what it calls "Fast Gas Friday" at its Queen Street and Waipahu locations.

"There is a lot of uncertainty with what's going to happen with gas prices, once the gas cap goes into effect. So, we have kind of been kicking this idea around for a while. So, this has kind of pushed us to get right on it," Lex Brodie's General Manager Scott Williams said.

Williams said the company will determine the cheapest gas price in town by looking at prices at Costco and on military bases and pushing down their price even lower.

Lex Brodie's uses attendants at all of its gas stations. All sales will be cash only so that credit card and personal check transactions don't slow the attendants down.

Lex Brodie's said if this Friday's event is a success, it hopes to continue offering low price gas every Friday next month.