xpert: $5 gas in Hawaii not unreasonable

February 22, 2011

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Expert: $5 gas in Hawaii not unreasonable

Reported by: Jai Cunningham

Email: jcunningham@...

Last Update: 6:10 pm

A gallon of premium gas will cost you an average $3.89 in Hawaii and don't

expect rising gas prices to slow anytime soon.

You might not think civil unrest in the Middle East has anything to do with you,

but if you drive it sure does.

The gas prices posted at your neighborhood gas station just keep going up.

In large part the rise can be blamed on what we're seeing unfold in the streets

of Middle Eastern countries.

" Now with it going into Libya, and they are a major oil producer now we're

seeing the oil prices jump up because reports that the oil companies are

shipping their people out of there, for safety reasons, " said Wake Up2Day's

business analyst Randy Havre.

According to reports Libya exports about a million barrels of oil a day and with

workers being pulled from the country many are speculating that production will

fall off considerably.

That means oil is going to cost more to big companies, who will ultimately pass

it on to you.

" We already saw today the spike in oil prices. We were up four or five percent,

$4.00 or so on the barrel. And that in itself is going to equate to higher gas

prices. And it will be instead of four or five percent on the oil price, we'll

see like ten percent on the gas price, " Havre said.

And with average prices headed north towards four dollars a gallon, where will

it stop?

" Most definitely, we saw the last time we had a big disruption in the oil

supplies and people were really concerned we got up to $140 a barrel, " Havre

said. " I'm paying right now, because I have to put premium in my car, but I'm

paying $3.89. So, yeah $5 is not unreasonable. "

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