Gas caps

Hawaii's Public Utilities Commissioners apparently were all at the beach when they should have been in Econ 101.

HONOLULU - In an effort to gain some control over what motorists pay at the pump, Hawaii on Wednesday became the first state in the U.S. to set caps on the wholesale price of gasoline.

Any freshman economics student can tell you that price controls discourage production, leading to reduced supply and eventually shortages. Anyone remember the 70's?

Fereidun Fesharaki, an energy expert at the University of Hawaii's East-West Center in Honolulu, said the gas cap was "a stupid idea" that would be bad for competition and, ultimately, consumers.

"It may make one of the refineries shut down and leave Hawaii," Fesharaki said.