Gas Prices: Hawaii Drops Its Gas Cap

By May 7, 2006Energy

Interesting AP story by Mark Niesse about Hawaii’s short-lived cap on gas prices. Hawaii, the state that pays the highest pump prices, enacted a cap on gas prices back in September 1

The result? A study done by an economics professor said the cap had ultimately cost consumers 5 cents more per gallon. Another study — this one done by the state Department of Business, Economic Development and Tourism found that in the aggregate it cost motorists almost $55 million more than they would have paid if there were no cap. Said the study’s author, “As is the case in many issues, I think many people are looking for simple answers to a very complicated problem.” Ya think?

Keep this in mind as you hear politicians discussing so-called “solutions” to high gas prices, while they ignore the supply side entirely.