Indications of how high gasoline prices in Honolulu could rise this week under gasoline price controls surfaced yesterday, with a few stations raising the price for regular to $3.179 a gallon.

At the same time, many stations yesterday kept prices at $2.889 to about $3 a gallon in Honolulu, which was similar to or slightly higher than Friday's prices.

Pump prices this week are expected to rise because, beginning yesterday, wholesalers are allowed to raise the price of regular gasoline statewide by about 28 cents from last week's level.

That means that in Honolulu the wholesale price cap for regular rose from $2.76 a gallon last week to $3.04 a gallon this week, including taxes. At the retail level, prices could rise from about $2.88 a gallon to $3.16 a gallon, if wholesalers charge the maximum allowed by law and dealers maintain an estimated 12 cent per gallon margin.

Yesterday Bob Swartz raised the price for regular at his Chevron stations in Kalihi, Kane'ohe and Kailua by 22 cents a gallon to $3.179. "I think we're probably the first" to raise prices so much, Swartz said.

"Today I got the biggest wholesale price increase I've ever had on a single day. I'm just doing the best I can to keep up with the wholesale price."

Democrats who support the gas cap have said the goal was to make Hawai'i prices fair by linking them to Mainland prices. The caps are expected to drive local prices up faster when Mainland prices rise, then force prices to fall faster than in the past, when prices changed more gradually.

However, the timing of the start of the cap that took effect Sept. 1 was unfortunate for supporters of the law. For the next two weeks at least, prices under the cap are likely to rise because of the drastic jump in Mainland prices in the wake of Hurricane Katrina.

"That is a concern," said House Majority Leader Marcus Oshiro, D-39th (Wahiawa), yesterday. But, "so far so good," said Oshiro, noting that the price for regular in Wahiawa ranged from $2.91 to $2.93 a gallon yesterday.

Citywide, the price for regular was $2.921 a gallon in Honolulu on Friday, according to the AAA Daily Fuel Gauge Report. That was more than 13 cents below the national average of $3.057 a gallon.

Oshiro said Hawai'i's relatively low price indicates the caps are working.

"I'm pleased that the cap has kept prices in check," he said.

The law limits the price for wholesale gasoline, but retailers are free to charge whatever they want.

The caps don't require wholesalers to price at the maximum allowed, but economists and oil industry analysts said it is likely they will do so to offset times when they are forced to lower prices. Last week Gov. Linda Lingle, who opposes price caps, wrote to Hawai'i's two refiners — Chevron Corp. and Tesoro Petroleum Corp. — urging them not to charge the maximum wholesale price this week.

Even if wholesalers raise prices to the maximum allowed by law, it could be a day or two before street prices rise. That's because stations typically don't buy gasoline every day.

"It depends on whether they get a gas delivery," said Bill Green, a former owner and now consultant to the Kahala Shell station. At Kahala Shell, the price for regular remained $2.899 a gallon yesterday, though prices were expected to rise this week.

"If we get something like a 20 cents or in that neighborhood (wholesale price increase), we'll have to take every bit of it" and pass it along to customers, Green said. "No question, we'll be from $3.09 on up" a gallon in Honolulu.

Critics of price caps argue that they will lead to higher prices and less competition as oil companies leave Hawai'i. That could result in lost jobs and fuel shortages. Gasoline shortages also could occur if consumers rush to buy gasoline ahead of the weekly change in wholesale price caps.

Chevron Corp. spokesman Albert Chee yesterday said there were minor supply disruptions during the weekend as drivers apparently topped off gasoline tanks before this week's anticipated increase in pump prices.

"We've had an increase in station run-outs, but nothing prolonged," he said. "We believe these are tied to changes in buyer behavior" because of the price caps.

Reach Sean Hao at shao@honoluluadvertiser.com.