We are less than three weeks from the complete elimination of Hawaii Safe Travels and all Covid-related protocols for Hawaii travel. Having said that, we have been getting news over the last 24 hours of something else that is going to be expensive for Hawaii visitors and Hawaii residents alike.
It started when we saw the headline on MarketWatch, “Par Pacific to suspend Russian oil purchases for its Hawaii refinery.” Until then, we hadn’t given much thought to where our oil and gas in Hawaii came from. Naively, perhaps, we thought it was from the same sources as other states. Well now we’ve learned that isn’t the case at all, and it is troubling, to say the least.
Higher gasoline and all fuel-related costs in Hawaii impact just about everything.
The US Energy Information Administration says that “isolated by the Pacific Ocean, Hawaii is the most petroleum-dependent U.S. state.” We generated 60% of our electricity from petroleum products in 2020.
While the mainland consumes just 1% of US refinery processed oil from Russia, Hawaii uses from 10%-25% Russian crude oil. To reduce fuel costs, Hawaii refineries have imported fuel directly from other countries such as Russia. This is because The Jones Act of 1920 requires that cargo, or in this case fuel, sent to Hawaii from the mainland must travel on US-built and staffed ships. That’s very expensive to do.
We also just learned that the only remaining coal-powered electric plant, located in West Oahu, is due to close permanently in a few months while its renewable replacement is still in the works and has been delayed.
Impact on Hawaii tourism.
You may not give that much thought to this, as has been true for us. But fuel costs impact Hawaii vacations in innumerable ways. With the cost of fuel rising quickly, you can expect to see across the board increases in costs.
Hotels are major power consumers and they too will experience the direct impact of higher energy costs. Moreover, the cost of air freight, widely used in Hawaii, will impact all costs here in the islands. And fuel costs will also impact ocean shipping, with Hawaii dependent on nearly everything residents and visitors consume.
Hawaii airline ticket prices to rise with sky-high jet cost fuel.
As new jet fuel prices are being reached daily, there is huge cost pressure on the airlines that fly to Hawaii. The vast distance between the US mainland and Hawaii means that fuel costs are a huge factor in airline ticket prices. And yet, airlines may be hard-pressed, at least in the short-term to pass on the rising fuel costs to passengers. That as the pressure comes at the precise time when the airlines are making a recovery in Hawaii passenger traffic following the latest Covid wave.
What Hawaii is doing to free itself of oil dependency.
Kauai, which has its own power company, has already achieved 60% renewable energy and that’s anticipated to be 80% in the next couple of years. The islands of Oahu, Maui, Hawaii, Lanai, and Molokai are served by Hawaiian Electric and are currently at 35% renewable energy.
Will rising costs next impact your Hawaii travel plans?
As all of us across the country acutely feel the surge in gas prices, it is causing many to rethink budgets and forgo travel and other non-essentials. What about you?
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Aloha! I will fly there to use my new credit cards and have boarding passes for me someone to be marriage my friends and baby with me to Oahu and then Maui in Hawaii!!🥰🥰🌺🌺🤙🤙🤙
Huh?
Wow, one curve ball after another. My wife and I have been dying to visit for over 3 years now. First Covid and our govt’s mishandling of the information and rollout of the therapeutics.
Maybe Covid is finally dissipating and maybe Putin will realize it was a big mistake. Maybe recall Ige?
I worked for the utility on Kauai for 30 years. The solar and hydro projects that comprise the bulk of the renewable generation on Kauai are not intended, nor do they reduce the price for electricity. Even with 80% renewables the price on Kauai for electricity remains higher than on the other islands. The main reason for renewables there is to secure an adequate supply to better control access rather than lowering cost.
I would think with what’s happening to the price of oil in the last few weeks, Kauai well be sitting very nicely in the near future.
I’ve been a customer of KIUC for 13 years now. I can confirm electricity is super expensive on Kauai. We have all LED lights and no A/C, so the electricity is primarily consumed by our refrigerator and electric dryer, and our bill is around $150/month. We used to have a propane dryer, but propane on Kauai is also super expensive.
To the point of the article, the spike in prices is not unique to Hawaii. Travel to anywhere, or staying home for that mater, just got a lot more expensive.
Southwest Airlines has a long-standing cap on the price they pay for fuel that they bought into, it’s one of the reasons they still offer free baggage. Hopefully they can take advantage big time of everyone else’s folly…
It’s called hedging, all the airlines do it. Last thing Hawaii needs is SWA trying to grow as much as possible here. Hawaii is not Orlando or Las Vegas….as much as they would like to turn it into that.
Aloha BOH Bro’s
As it pertains to world events count your blessings that you live where you do.
If you’re fortunate enough to take advantage of travel to such a special place as Hawaii than do it. Good chance your next trip could be your last trip.
Truth be told…
The various versions of wave, current, and tidal energy capture devices have made significant improvements in recent years. Hawaii is surrounded by oceans that can be harvested for inexaustible energy. Don’t know why that’s not being discussed.
Cost and reliability are huge factors. Cheaper and more reliable/proven renewables are available Mostly solar and run of river hydro. If someone wants to come in and build a wave project its possible the utilitys might be interested in buying whatever it generates.
Very much agree Doug. GE has a wave generator and it’s safe for wildlife too. As I remember there are 3 or 4 countries in Europe that are to some degree using this generator. I would think that a place like Hawaii would be perfect for such a tool.
Aloha
We are making plans to come this summer, but I do have to admit I feel somewhat guilty considering what is happening in Ukraine at the moment.
Higher prices on everything is exactly what the government wants so that they get their “richer” tourists and attempt to eliminate the bargain hunters!!!
Bike rental would be a great option for people to consider as fuel costs rise. Moped and motorcycles would be another option as would electric and battery powered vehicles. It would be wonderful if Hawaii would opt to use more golf cart type vehicles and set a precedent against this war.
Only practical in urban areas. Much of the islands are rural. Golf carts are impractical. Bike rentals are available in cities and some towns. Anybody that can afford to fly to Hawaii and rent a place to live isn’t going to be interested in saving a few bucks for a couple of weeks by not renting a car.
Unfortunately, much of Hawaii roads are not safe for bicyclists, and the locals can be hostile if they get stuck behind you in their trucks. The roads on Kauai, for example, are very narrow. No room for bike lanes (or for walking along the road, for that matter). If you plan to ride a bike for your vacation transportation, I’d pick another place to go.
Hi David.
Thanks for that input. Mopeds are also not safe here in Hawaii in the way they are in French Polynesia for example.
Aloha.
But it doesn’t have to be this way-it’s a quality of life issue-,-take back the streets is a global movement finally with changes on Oahu-roads are not just for gas hogging cars/trucks-the mind set needs to change so that roads are safe for pedestrians and other forms of transportation. Just like parking-parking is a public resource -this is happening in small towns all across the US-and it needs to happen in HawIaii ,on ,all the islands
Maybe on Oahu, but good luck with that anywhere on the north side on Kauai. It’s not like this “road widening” concept hasn’t been kicked around for decades. If anything even close to a bike lane was to be added over the next decade or two, it will be south-west of the Wailua river bridge, more likely not until close to the airport.
I made reservations for May, as soon as there was a rumor that Safe travels was going away, because I anticipated a rise in prices. I chose Waikiki, because I won’t need a car, and a condo so I can cook some meals, although I know groceries will be higher also. The other islands will have to wait, until cars and fuel become less expensive.
I read the same story and came to the same conclusion. Higher gas and hotel prices pale in comparison to the probable beginning of WW III. When we all realize that the first shot fired in a former Soviet Bloc Eastern European country results in a certain NATO response, the less we should all care about our next vacation. On the other hand, why not squeeze one in before we are all hunkered down again?
You are right. Everyone should walk everywhere from now on.
So glad this state will suffer
Michael, Hawaii is certainly not for everyone but the fact that you are trolling on a Hawaii site when you feel that way says nothing about Hawaii and volumes about you, people with your attitude are easy to spot and invariably have a bad time here anyway……just sayin.
Geez! What a horrible statement to make!
I have a very simple question; why is Kauai not more reliant on hydro power? As I understand it, the Kauai Coffee Company built a pipeline to bring water from the North Shore to their south shore plantation. The water is used for irrigation and to power a hydroelectric plant. Why is the rest of the island not utilizing that same technology instead of relying on that oil fired generating plant. There is a never ending supply of water available from the mountains on the North Shore. Why not use it
It is environmentally intrusive and affects the ecosystems in the jungle negatively and impacts endangered species. I think a mitigation permit is available for a few hundred bucks.
Nitti, I can see from the thumbs down people don’t care what happens to endangered species. Keep up the good work
They do. Small-scale hydro is everywhere. But environmental and cultural realities have an important impact on decision making.
My sister just booked our flights to the big island in January. I am so glad that she did when she did because of gas going up. Can’t wait to get there even if it is months away.
I remember the gas lines of the 70’s even though I didn’t own a vehicle. I will always drive a small vehicle.
I’m shocked,saddened and disappointed by the trend in Hawaii to drive large vehicles. How this relates to travel,travel has,and will be an important part of my life-daily I reduce my carbon footprint so I may travel
The Russian military is being financed by oil sales. Hawaiian citizens should demand no more Russian oil purchases until the war is stopped. Hawaiians should be horrified sending money to Putin. Shame on the utilities that continue to purchase Russian oil amid the bloodshed in Ukraine.
The oil that goes to Hawaii is not from the Middle East or from Russia. Those markets are too volatile for an island nation to rely on.
As a long time visitor of Hawaii and trying to come back more frequently yearly with the flexibility of timeshares, it saddens me that the absolutely ridiculous cost of renting a car currently Will keep me from doing just that. My 13 days stay this summer was dampened by the reality that the cheapest car would be more than $1800 While one can stay in Waikiki without a car, enjoying Kauai or Maui would be extremely difficult to do. I hope there is some solution to this shortage of rental cars.
timely well done article thanks-Ukraine being attacked by putin has great effect on all of us
Mahalo for this. It just shows how interdependent all human beings are in this age of globalization not to mention our humanity. Especially now.
I wasn’t aware that there is such a huge disparity between Kauai and the other islands on renewables. Good for Kauai!!
Yes, renewables…but they still don’t lower our rates. I pay $157 to $185 per month for electricity and my unit does not have A/C! Gasoline was less expensive on Kaua’i back in November than Santa Barbara, CA as the gas prices are tied to the Gulf States I think.
Even if I have to pay $10 or $20 a gallon for gas when I’m in Hawaii next month, it’s nothing compared to the sacrifices Ukrainian citizens are making right now.
We had to cancel our Kauai plans last year and will not allow this to derail our return next month. Fuel costs (as well as others) have always been much higher in Hawaii and we expect to pay more, but we will likely plan our excursions more carefully this time.