As the price of gasoline continues to fall, both residents and businesses in Hawaii are reaping the benefitAccording to AAAs Daily Fuel Gauge Report, the average price of regular unleaded gas Wednesday on Oahu was $3.59 per gallon. That compares to $3.88 per gallon a month ago and $3.85 a year ago. However at discount retailer Costco, regular gas has fallen below $3 per gallon. Its a Christmas gift, Reece Nakamoto Farias, the sales and marketing manager at Beretania Florist, said about the falling gas prices. In Hawaii you always expect things to keep going up and up and up, so when something falls a little bit, it really helps out the business community. Although the falling price of gas is a welcomed relief, prices in Hawaii have not dropped as fast as many cities on the U.S. mainland. For example in Los Angeles, the average price of regular unleaded was $2.87 per gallon on Wednesday according to AAA. Just a month ago gas in LA cost $3.19 per gallon and a year ago, $3.58 per gallon. There are a variety of reasons why gas prices in Hawaii fall slower than the rest of the country. One example: the cost of shipping. Crude oil refined into gas in Hawaii can come from as far away as Saudi Arabia and Libya, or as close as Russia and Indonesia. However, Farinas isnt complaining. He estimates his fuel costs have dropped 10 to 15 percent in the past few months, which is especially helpful during the busy holiday season. Because we deliver so many flowers its a fixed expense for us, he said. Any decrease in our fixed expenses gives us the opportunity to invest in jobs, infrastructure (or) advertising. Its just great for the economy. Drivers filling up at the Costco Iwilei Wednesday morning have also noticed the plunging fuel prices. Rene Brown of Kailua almost did a double take as she pulled up to a pump. I was shocked, she said. I cant believe that it dropped so fast because I came here two days ago and it was $3.19 (per gallon). Then, it went down below $3. Im glad its finally going in the right direction, added Michael Santantonio of Waimanalo. I thought it was going to go over $5 and stay there. Now, its at $3 and hopefully it will stay there for a while. Of course, drivers on the neighbor island continue to pay more. In Wailuku, Maui, the average price of regular unleaded Wednesday was $3.90 per gallon. Some analysts are predicting the price of crude could fall below $50 a barrel in 2015 as supply continues to outpace demand.
Posted on: Thu, 18 Dec 2014 04:42:47 +0000
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