Washington’s gasoline prices are some of the nation’s highest. The average for a gallon of gas is $5.75, significantly higher than records set in previous years. Only California has more expensive fuel.
War in Iran has driven up these prices, but that’s only part of the story. Washington state’s local taxes on fuel are also high, and another addition to those taxes is set to kick in this summer.
As prices climb, consumers are slowly starting to feel that the cost of gas is no longer affordable. Scott Montgomery, a geoscientist at the University of Washington who studies oil and gas industry trends, said we’re now starting to hit this tipping point.
“Once it gets above $5, a kind of a red light goes on in many minds,” Montgomery said.
In the past, gas prices in Washington have been higher than in other states due to a unique set of state taxes and a carbon emissions program that makes companies pay to pollute the environment.
The state’s gas tax is one of the highest in the country, adding about 55 cents to every gallon. Under the state’s Climate Commitment Act, oil refineries must purchase carbon credits to offset their emissions, and they pass that cost on to customers at the gas pump, adding another 50 cents to every gallon.
Montgomery said that the state’s lack of an income tax contributes, too.
“It’s been argued many times that an income tax would lower the fuel taxes,” Montgomery said. “This is a state trying to balance things out. And it's not meant to impose undue burdens on consumers.”
About a third of Washington’s transportation budget comes from the state’s gas tax, funding projects like road maintenance and public transportation infrastructure.
Montgomery noted that consumers may continue to notice prices creeping upward this summer as a result of a more expensive summer blend of gasoline that reduces emissions in higher heat, and a five-cent hike in the gas tax that was signed into law by Gov. Bob Ferguson last year.
Washington’s AAA office, which tracks gas prices, and the Western States Petroleum Association declined to comment for this story.
