Hawaii Becomes First State to Cap Gas Prices

Hawaii has become the first state in the nation to set limits on gasoline prices. It's a move critics warn could lead to supply shortages. The state Public Utilities Commission is setting the wholesale price ceiling for gasoline in Honolulu at just under $2.16 a gallon. With taxes, the wholesale price would be $2.74. If wholesalers charge that price and retailers keep their typical 12-cent markup, then the price of a gallon of regular unleaded in Honolulu could rise to $2.86 per gallon.

The caps apply as of next week, when a new law goes into effect allowing Hawaii to set a maximum wholesale price at which gasoline can be sold. The law doesn't put a cap on retail prices. :: Rueters