By TOM CALLIS
By TOM CALLIS
Tribune-Herald staff writer
A propane price war is underway in Pahoa.
Suppliers have recently dropped their prices to as low as $3.95 per gallon, a stark decline from between $5 and $6 per gallon about a month ago.
The decrease is being fueled by a new propane retailer guided by an altruistic mission.
For Lawrence Hamocon, owner of Jireh Fills Hawaii, running a business is not just about making a living. It’s also about helping those in the community.
That’s why when he opened at the corner of state Highway 130 and Kaluahine Street on Feb. 11, he started selling propane at $3.99 per gallon, a price low enough to give consumers a much appreciated break, yet still just high enough to skim across the profit line.
The result?
Puna District residents who rely on propane to heat their water or run their stoves began flocking to the new location, and competitors, feeling the pinch, began dropping their prices.
“It’s crucial,” said Lester Walker, who drove 45 minutes from Volcano to fill his three propane tanks.
Walker, 29, said he uses propane to save money on his electric bill.
The extra buck or two he saves per gallon goes a long way, he said, estimating that he is saving as much as $200 per month.
“It’s more gas in the tank,” Walker said.
Hamocon, 27, said he was inspired to start the business, and offer such a low price, by the charity work done by his father, Lance, and other members of the City of Joy Christian Fellowship.
“I’m really proud,” said Lance Hamocon, who operates a free kitchen on the same property.
“It’s about doing the right thing.”
Lawrence Hamocon centers his business around a sense of charity, and says he sees providing low-cost energy as his duty as a Christian.
The business’ name also sums up his approach. Jireh, in Hebrew, means to provide, he said.
The new businessman said he determined the price by figuring out how much money he needed to make, not how much he wanted to make.
“We’re making enough money to be able to continue, and bless the people, basically,” he said.
“We put our own footprint in the sand. We are hopeful others will follow.”
And they are.
About a mile down the road, Pahoa Battery & Propane is now selling the gas for even less at $3.95 per gallon.
The supplier was recently selling propane for $5.50, said Sean Marston, sales representative.
Marston easily admits that Hamocon’s business has caused them to lower their price.
But he denies that prices before were unnecessarily high.
“We’re trying our best to help the community,” Marston said, adding that the propane, barbecue, and solar panel supplier has higher overhead costs.
The two also have different suppliers.
Jireh Fills Hawaii uses AmeriGas, which mostly operates around Kona, while Pahoa Battery & Propane orders from The Gas Company, which is more prominent on the east side.
Hamocon said the distributor is a “big part of the reason” why he can offer such a low price.
John Clay, AmeriGas’ island manager, said the new retailer is the company’s second customer in or around Hilo.
“They have different prices,” he said of their customers, while declining to be more specific. “Every market is a little bit different.”
Hamocon and his wife, Ashley, said they plan to keep their price at $3.99 as long as wholesale costs don’t rise, believing that they have built a lot of trust with propane users, and will continue to see those return customers.
“I just noticed the huge impact that we’ve had on our customers,” Ashley Hamocon said.
Her husband said he doesn’t mind the competition.
“If you’re not coming to me, you are still getting a good price right now,” he said.
Gabe Hawelu said he is glad to get cheaper propane, no matter where it comes from.
“It is a wonderful thing,” he said while filling up his tanks at Pahoa Battery & Propane.
“Competition is getting everybody a better deal.”
Whether the price war can be sustained remains to be seen.
Asked if Pahoa Battery & Propane can make a profit at the lower price, Marston said simply, “We’re trying.”
Email Tom Callis at tcallis@hawaiitribune-herald.com.