For What It's Worth
I recently had some personal time off, so my wife and I joined our oldest son Eric on a 10-day vacation to Hawaii. It was the first time for us in the Aloha State and we were ready for the high prices we knew we were going to find for just about everything. We were reminded of that each time we went out to eat, for instance.
We did rent a car for a part of the trip spent on the Island of Hawaii, aka Big Island. Staying on one side of the island, we wanted to visit Hilo and the Volcanoes National Park on the other side to see if the volcano Kilauea would be erupting when we visited, so we rented a car. It didn’t erupt but did steam a bit on a rainy day. We also spent a day in Honolulu with a vehicle, driving to the north shore of Oahu to see the Waimea Bay area, the Byodoin Temple and Dole Plantation.
Otherwise, we used the rideshare apps of Lyft and Uber to get around, partly because of the short distances we needed to go and not having to fill the tank that often. We also didn’t want to rent a vehicle knowing that we would also be charged at least $50 a night just to park it in the hotel parking lot. Uber and Lyft seemed to be a better option for what we needed to do.
After we first arrived in Honolulu, we left for a hotel where we would stay the night and recover from the eight-hour nonstop flight from Minneapolis. We were picked up at the airport and left for the hotel. While we were on the streets to the hotel, I did what I do a lot when I drive: check gas stations for their gas prices by reading their signs. It’s my version of seeing the landscape and scenery.
Well, the first gas price I saw in Hawaii didn’t surprise me, but it did startle me: regular unleaded gas for $5.69 a gallon. It makes $3.89 here sound pretty cheap, right?
Why it didn’t surprise me is because I do follow gas prices fairly regularly when I am commuting and traveling. I shop for gas prices like some women may shop for shoes. If I am aware of a cheap price that may have me drive a bit out of the way, I’ve been known to do it if it might save a few pennies in the fill up.
According to AAA, the average fuel price for regular unleaded gasoline in the United States as of Friday, May 1, was at $4.392 a gallon. That was an increase of nine cents in just a day, nearly 34 cents more than a week ago and $1.21 above what you were probably paying at the gas station 12 months ago.
In Mississippi, the average price on May 1 was $3.832 a gallon, among the lowest in the country. Marshall County’s average price is $3.855 a gallon. To the east, Benton County is at $3.807, and to the west, DeSoto County’s average price is $3.834 and Tate County is at $3.882.
By the way, we are still short of the highest average price recorded. In June 2022, Americans were paying on average $5.01 a gallon, while we were still wearing COVID masks and practicing safe distancing, remember?
Why are prices so high? Today, it’s what some would call a “perfect storm” of factors, between tensions in the Middle East, fears about supplies, a switch to a more expensive “summer blend” of fuel, higher demand, and surges in diesel prices. It’s more expensive to produce but required to be done to reduce smog in the summer months.
I remember when my dad was upset seeing prices reach 40 cents a gallon in the early 1970s.
The summer influence will remain at the pump through September when the cheaper winter-blend fuel begins to come out.
With summertime, there’s also a stronger demand for fuel with increased summer travel and that inches the fuel price up.
In Mississippi, gas prices also include a higher gas tax as of July 1, 2025, part of the infrastructure and tax reform package from the last state Legislature. It’s a nine-cent phased-in tax increase that started with a three-cent increase in July of last year, making the state gas tax 21 cents a gallon. The next three-cent hike comes on July 1 of this year, making the gas tax 24 cents a gallon. Another three cents a gallon will be added next July, making the state gas tax 27 cents a gallon.
So, what do you do? Stations set their pump price to cover their costs while making some level of profit, as with any business. The desired profit level can vary, so what may be $3.49 a gallon can become $3.89 a gallon just down the street for the same gasoline.
But while the station is able to price its gasoline as they wish, the consumer/driver can also decide where they want to fill up. As I mentioned earlier, because I drive a lot, I shop for gas prices when I’m on the road.
Some brands offer rewards programs that offer a discount of the per-gallon price for a fill up if you visit a certain number of times. Some major food brands also offer rewards programs, giving you “points” to turn into a per-gallon discount for a gas fill.
There are also phone apps that provide the price reported at a station. GasBuddy is one that I use on my phone where I can see reported prices in the area and list them by distance to me or by lowest to highest prices. That might determine where I need to go to fill up without spending more than I need to.
Many drivers make sure they fill the tank completely when they come to the pump, but I’ll set a certain amount to spend, expecting that I’ll find a cheaper price down the road at another time.
Fuel prices make up an average of two to four percent of a household’s annual budget, experts say, but the monthly average amount budgeted for a household is now between $200-$234. That’s real money, especially for those lower-income families that may have to determine when fuel cost has to switch to food cost, making it a 4.2 percent impact on their income for gas.
One of my hopes with the presidential election of 2024 was that we would start to see a drop in the pump prices we were forced to endure with the early 2020s. Global events and other factors have kept that from happening, apparently, but I hope it can still happen.
By the way, I never paid $5.69 a gallon for gas in Hawaii.
That’s what I have for now...for what it’s worth.
Bob Bakken is editor of The South Reporter.