Why is gas so cheap on the mainland and not here?

[EightFingers]

I know it’s Hawaii and there’s shipping and all, but it looks like in some places on the mainland it’s less than half of here. I don’t see demand going up because there’s really no place to go. Commuting is down, no schools, etc.
Just wondering...

Puna: Our roosters crow first

[HereOnThePrimalEdge]

Oil prices crashed a week ago, from $60 a barrel to $20, the lowest in decades. Demand for gas & petroleum products has plummeted over the past 1-2 months.
We’re in the supply and demand twilight zone.

[terracore]

Ask the only petroleum distribution company on the island that question.

[alaskyn66]

48.25 cent fuel tax per gallon doesn't help.

[terracore]

Somebody once explained to me that "gasoline" arrives on the barge as a raw material. If it's Texaco or Aloha Fuel or whatever they add their own formulation of chemicals to it to make it distinctly their own.

Young Brothers is owned by Saltchuk, the same company that owns Aloha Air Cargo and Minit Mart gas stations (along with like 50 other companies). They are primarily a petroleum distribution company.

All the Hilo fuel tanks and petroleum stuff is near where the fuel barge docks in the tsunami inundation zone. If that gets "affected" most gas stations have less than a day's worth of fuel. I think I remember reading that both airports on the island have 2 days worth of aviation fuel.

Plan accordingly.

[randomq]

It always amazes me Costco gas can be $0.80 cheaper than the Hilo average. Yet no one says anything. It's like we've all given up.

[Mangosteen]

Cheap gas ($1.29 a gallon) seems to be a Mid West to the East Coast thing. As one heads west (all the way to Hawaii) prices increase.

https://www.gasbuddy.com/GasPriceMap?lat=50.14295286068859&lng=-108.0261588489418&z=4

[Rob Tucker]

Several years ago a third party did a study of Hawaii gas prices and determined it was simply price gouging. Yes, Hawaii is an island in the middle of the Pacific but oil tankers crises cross the globe constantly so our location has little to do with it.

Institution price gouging and kick backs affect most everything here.

[EightFingers]

You might even call it government-assisted price gouging.

Puna: Our roosters crow first

[Mangosteen]

quote:

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Originally posted by randomq

It always amazes me Costco gas can be $0.80 cheaper than the Hilo average. Yet no one says anything. It's like we've all given up.

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Its like their Hot Dogs. Its a loss leader to get people into the store.