Maui drivers watch gas prices reach $4

updated 3:13 p.m. ET March 14, 2008

WAILUKU, Hawaii - "Maui No Kai Oi" is a popular Hawaiian saying that means Maui is the best. Mike Sweeney recently moved to this idyllic island from Denver and was hit with the other side of living in paradise with his first visit to the gas pump: Maui is also No. 1 in gas prices.

"After seeing the total, I won't be smiling," Sweeney said as he watched the numbers on the Chevron pump spin faster than a slot machine.

The pump finally stopped at $97.20, which put 24.5 gallons in his Chevrolet Avalanche.

He was elated about living on Maui and being reunited with his black, super-size pickup truck, which just arrived from Colorado, but he wasn't so thrilled about paying nearly $4 for a gallon of regular.

While the price of oil climbs above $110 a barrel, most Americans dread the day they will have to pay $4. On this tropical island and a few stations in California, $4 gas has already arrived, straining the pocketbooks of residents and businesses.

Maui is on the verge of becoming the first area in the nation to average $4 for a gallon of regular. The average price in Wailuku reached $3.943 on Friday, the highest price in AAA's Daily Fuel Gauge Report. At several stations, it was a penny shy of $4. In the remote coastal town of Hana, it was around $4.40 a gallon.

"Outrageous. Completely outrageous," said Janet Carone, of Wailuku.

The high price to get around has hurt many families, like the Carones. They're coping by driving less, carpooling or working more.

"It has a big effect because our housing is high, our food is high, and the gas prices just make it worse," she said.

Other than AAA, perhaps no one on Maui tracks local gas prices better than Deok Lee, owner of Airport Taxi. He maintains a detailed record of gas expenses using Excel spreadsheets on his laptop.

In just nine days, Lee had spent $300 to fuel his Toyota Sienna van. Like his drivers, the more Lee pays for gas, the less money he brings home. His pay shrinks by the day _ and by the gallon.

"Crazy," he said about the prices. "Ridiculous."

Fuel cost has more than tripled since he took over the business in 1999, and it's forcing him to consider trading his van, which costs $80 to fill, for a smaller four-cylinder car.

"Unfortunately, it's going to take away some comfort for the customers. But you gotta do what you gotta do," he said.

Lee expects many cabbies will be forced out of business if fuel prices keep rising.

Chuck Gamarata, who operates the only limousine taxi on the island, is forced to work longer hours to compensate for the gas prices. He's still taking home about $10 less each day.

"You add that up over a year's period, that's thousands of dollars," he said. "It hurts. It hurts bad."

Other businesses are also feeling pinched.

Todd Winn, co-owner of North Shore Explorers, has been hit hard since launching the tour company in September. It takes 150 gallons of diesel, at $4.21 a gallon, to fill up his 30-foot rigid hull inflatable boat, which gets about a mile per gallon. It also costs more than $100 to fill up the Ford F-350 to tow it.

While the new company is trying to build up clientele, it may be forced to raise rates or add a fuel surcharge.

"It's been dramatic enough that we've actually seen our original business model blown out the window," Winn said. "It's been quite costly and we've had to cut costs in other areas to make it work."

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