Gas Price Drops Lagging in Washington

AAA officials stated that Washington state has the third-highest gasoline prices in the nation behind Hawaii, which is at $4.41, and California, which averages $4.27 per gallon.

Analysts with GasBuddy, a website and app that tracks gas prices, attributed higher gasoline prices to Washington state’s cap-and-trade policy and the carbon tax. They said that Washington and California have some of the highest prices because refineries must purchase credits to operate.

GasBuddy officials stated that they rely on user-reported data, while AAA officials said they use a combination of user reports and professional surveys.

Through the Climate Commitment Act, passed in 2021, Washington legislators said they had the goal to reduce greenhouse gas emissions by setting caps on pollution allowed in the state. Companies can purchase allowances through quarterly auctions, which began in 2023.

According to the Washington Department of Ecology, the department is slowly lowering the number of available allowances, while the cap-and-trade program has raised $4.3 billion to date for the state. In California, officials said more than $33 billion has been raised since it began its program in 2012.

Gas prices in Washington state have dropped 36 cents over the past month, according to AAA, which reports that gasoline was more than $4.12 a month ago.

Refining capacity plays a role in gas prices in the western states. Hawaii has just one refinery, while the West Coast has limited refinery capacity due to shutdowns in California, GasBuddy analysts said.

Locally, gas prices in northeast Washington are below the state average. As of Jan. 11, a gallon of gas costs $3.44 in Colville and $3.19 in Chewelah.