Gasoline prices increased by double-digits in some areas over the past week. The statewide average Thursday is $4.25 a gallon, ten cents more than a week ago. It is the highest gas rate in the country.
AAA Hawaii's Weekend Gas Watch said the gas price increase is as an ongoing result of market uncertainty about the effect of worldwide events on fuel supplies. At the same time last year in Honolulu, prices were 79 cents cheaper.
"As has been the case for much of 2011, unrest in the Middle East and Northern Africa and the aftermath of the Japanese earthquake and tsunami has continued to drive the markets during the past week," said AAA Hawaii Regional Manager Diane Peterson.
Rising fuel prices are once again boosting the cost of shipping goods to Hawaii just as consumers are adjusting to the shock of $4-a-gallon gasoline.
Matson Navigation Co. said it will raise its fuel surcharge on shipments from the mainland to 43.5 percent on May 1, the highest level since it broke out fuel costs as a separate item on customers’ bills more than 10 years ago.
The Merchant Marine Act of 1920 (P.L. 66-261) is a United States Federal statute that regulates maritime commerce in U.S. waters and between U.S. ports.
Section 27, also known as the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. The purpose of the law is to support the U.S. Maritime industry.
Critics note that the legislation results in costs for moving cargoes between U.S. ports that are far higher than if such restrictions did not apply. In essence, they argue, the act is protectionism.
Critics also contend the Jones Act has caused job-losses in the U.S.shipbuilding industry because vessels built in the U.S. are more expensive than those built elsewhere. Consequently, U.S. shipbuilders are priced out of the international market for merchant ships. A 2001 U.S. Department of Commerce study indicates that U.S. shipyards build only 1 percent of the world's large commercial ships. Few ships are ordered from U.S. shipyards except for cabotage. U.S. operators of ships in cabotage have an economic incentive to continue operating old vessels rather than replace them with relatively high cost vessels built in the U.S. The report concluded that the lack of United States competitiveness stemmed from foreign subsidies, unfair trade practices, and lack of U.S. productivity.
In June 2010, Sen. John McCain said that this law restricts shipping and raises costs to consumers in Hawaii, Alaska, Puerto Rico and Guam.
"The Jones Act also adds a real, direct cost to consumers – particularly consumers in Hawaii and Alaska. A 1988 GAO report found that the Jones Act was costing Alaskan families between $1,921 and $4,821 annually for increased prices paid on goods shipped from the mainland. In 1997, a Hawaii government official asserted that Hawaii residents pay an additional $1 billion per year in higher prices because of the Jones Act. This amounts to approximately $3,000 for every household in Hawaii.’”
Energy stocks are turning out to be the big winners in Friday’s stock market – and they’re managing do this while oil futures fall for a fourth straight day. Some of the gains may be related to expectations that some refiners, such as Tesoro, could benefit from more Japanese demand after an 8.9 earthquake shuttered some of the country’s nuclear infrastructure.
Tesoro operates a refinery in Hawaii, which is accessible to Asian markets. Japan is expected to draw on more crude oil, liquefied natural gas, fuel oil and coal to make up for the power that typically comes from several nuclear plants shuttered for safety concerns, note analysts at J.P. Morgan and Tudor Pickering.
a large part of the problem here is our power plants are diesel turbine generators. it is cheaper for our state to pay the EPA clean air act fines that to update our technology.
Originally posted by rocha123
WE ARE DOOM,the gas prices aare killing the households economys,we are paying .89 cts more since October last years.