Barrel tax increase would raise Hawaii gas prices - Hawaii News Now - KGMB and KHNL

Barrel tax increase would raise Hawaii gas prices

Robert Harris Robert Harris
Bill Green Bill Green

By Jim Mendoza - bio | email 

HONOLULU (HawaiiNewsNow) - Hawaii's high gas prices will go higher if a dollar increase in the barrel tax becomes law.

Supporters like Sierra Club - Hawaii Chapter director Robert Harris said a jump at the pump will be minimal.

"It's about a penny or two per gallon of gas," he said.

But others in the gasoline industry say it will be a significant spike.

"My minimum estimate would be five, six cents. But I think it could be eight, nine, ten cents," said Bill Green, consultant with Kahala Shell.

Lawmakers passed the bill Wednesday to help plug a budget deficit and move Hawaii toward energy self-sufficiency.

The tax increase on petroleum products from 5 cents to $1.05 would bring in $22 million a year, with $13.2 million going to the general fund and $8.8 million to food and energy security programs.

"The benefits that it would achieve is by funding projects like making sure solar is available, funding energy efficiency projects. The idea is it's supposed to be moving our economy off that direct link to fossil fuels.

Refineries would pay the tax then pass it on to clients.

They will pass it on to consumers in gas price increases and higher electricity bills.

Gov. Linda Lingle has said she likely will veto the measure.

"When you raise the price of a barrel of oil, you raise the price on every business in the state and every family," she said.

"It's an unnecessary tax on the driving public at a time when we should be figuring out ways to lower costs, not increase costs," Green said.

If lawmakers override the governor's veto the barrel tax increase becomes effective on the first of July.

Copyright 2010 Hawaii News Now. All rights reserved

  • Hawaii News Now headlinesNewsMore>>

  • Germany extends facial recognition test at rail station

    Germany extends facial recognition test at rail station

    Friday, December 15 2017 7:45 AM EST2017-12-15 12:45:42 GMT
    Monday, December 18 2017 2:32 AM EST2017-12-18 07:32:19 GMT
    Germany's top security official is extending tests of automatic facial recognition technology after an initial six-month trial showed the system had a good success rate.More >>
    Germany's top security official is extending tests of automatic facial recognition technology after an initial six-month trial showed the system had a good success rate.More >>
  • Forecast: Mostly clear skies, some vog ahead of strong cold front

    Forecast: Mostly clear skies, some vog ahead of strong cold front

    Monday, December 18 2017 12:04 AM EST2017-12-18 05:04:59 GMT
    Image: Hawaii News NowImage: Hawaii News Now

    Light winds and mostly clear skies are in the forecast for Monday, but an approaching cold front will combine with abundant moisture from the south to bring heavy showers and a chance of thunderstorms to most of the state by Monday night and Tuesday.

    More >>

    Light winds and mostly clear skies are in the forecast for Monday, but an approaching cold front will combine with abundant moisture from the south to bring heavy showers and a chance of thunderstorms to most of the state by Monday night and Tuesday.

    More >>
  • Flash Flood Watch to take effect Monday night

    Flash Flood Watch to take effect Monday night

    Sunday, December 17 2017 10:58 PM EST2017-12-18 03:58:55 GMT
    Image: Kevin Olson/FileImage: Kevin Olson/File

    Abundant moisture ahead of a slow-moving cold front could result in heavy showers and thunderstorms starting Monday night for Oahu, Maui County and the Big Island. 

    More >>

    Abundant moisture ahead of a slow-moving cold front could result in heavy showers and thunderstorms starting Monday night for Oahu, Maui County and the Big Island. 

    More >>
Powered by Frankly