Battle Over Gas Cap ContinuesTesoro President Says Price Would Be Up RegardlessPOSTED: 5:39 pm HST September 9,
2005 HONOLULU -- The president of one of Hawaii's two gasoline refineries said prices would have gone up in the state with or without Hawaii's gas cap law.Tesoro's president defended the company's gas prices, blaming Hurricane Katrina and a worldwide gasoline shortage.As Hawaii's gasoline prices continue to rise, the governor continues to blame Hawaii's gas cap law and the Democratic lawmakers who wrote it, but now one of the state's two gasoline refineries is weighing in with a different reason for higher prices.Because she thought Hurricane Katrina would artificially boost the price cap, Gov. Linda Lingle asked the refineries not to set their prices as high as the cap. But they apparently did anyway."This is exactly what we predicted would happen because that hurricane has nothing to do with the oil that's purchased in these refineries," Lingle said.However, a letter from Tesoro President Bruce Smith disagrees, although he does say the cap may cause supply problems later."What we are currently experiencing is the market reacting to a severe supply interruption by increasing prices in order to attract needed supply," Smith said in his letter.The Tesoro president said Hurricane Katrina damaged the country's energy infrastructure, which amplified the effect of higher oil prices and a refinery shortage.The governor admits she's not sure the gas cap is forcing up prices because the companies are keeping their wholesale prices secret."Without that information, how could you possibly know that someone was gouging or not?" Lingle said.Chevron said the gas cap is influencing its pricing, but officials won't say how much. A spokesman said disruptions in the gulf haven't affected Hawaii before.Drivers with whom KITV 4 Island Television spoke said they don't trust either explanation."I don't think they've been too honest with us all along," driver Louis Pavao said."I don't believe in anything an oil company says. I really don't," driver Dale Machado said.Nationwide, gas prices have stabilized with Hawaii prices in the top four states.However, next week, the wholesale price cap will go up 44 cents. If prices rise that much, it will be pretty clear that the companies are trying to get as much out of Hawaii consumers as they can before the cap forces their prices back down, KITV 4 Island Television News reported. Copyright 2005 by TheHawaiiChannel.com All rights reserved. This material may not be published, broadcast, rewritten or redistributed. | KITV on Facebook
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