As most Washington drivers are aware, gas is expensive in this state. But as that expense is quantified, it is instructive to add a little context.
Washington has the highest gas prices in the nation. The average price on Monday, according to AAA, was $4.658 per gallon. That was significantly higher than the national average of $3.177 per gallon, and slightly more than the California average of $4.653. For comparison, Mississippi has the lowest price, with an average of $2.702 per gallon.
The price of gas in West Coast states typically exceeds the national average — for a variety of reasons.
One is that there is no oil production in Washington or Oregon, and refinery capacity is limited. The Olympic Pipeline, which delivers gas from Washington refineries to Seattle and Portland, recently was offline for an extended period, reducing supplies throughout the Northwest and contributing to a price jump.
Another reason is high gas taxes in West Coast states. According to the Tax Foundation, Washington’s state tax of 55.4 cents per gallon is the third highest in the nation; California has the highest, and Oregon ranks 12th. Added to the federal gas tax of 18.4 cents per gallon (which has remained unchanged since 1993), taxes account for more than 15 percent of the price of gas in our state.
Following legislation passed this year, Washington’s gas tax increased 6 cents per gallon on July 1 — part of a six-year, $3.2 billion package for road construction and maintenance. Beginning next year, the tax will increase 2 percent annually. State Sen. Marko Liias, D-Edmonds and chair of the Senate Transportation Committee, said upon passage of the increase: “This will keep projects on track and ensure the promises we’ve made can be kept. As you drive around and see those orange cones, that’s where your money is at work.”
Washington’s Climate Commitment Act also has impacted gas prices in the state. The 2021 law charges polluting industries such as refineries for carbon emissions — charges that are passed along to consumers.
Upon passage of the law, then-Gov. Jay Inslee said: “This is going to have a minimal impact, if any — pennies. We are talking about pennies.” Analysts disputed that rosy assumption, and a year later, state officials pegged the increase at 25 to 27 cents per gallon.
Geography (Washington is far removed from most petroleum industries), state policies and Washington’s desire to mitigate climate change as much as possible contribute to high gas prices for consumers. But so does inflation.
In 1980, according to GoBankingRates.com, the national average price of gas was $1.19 per gallon. That equates to $4.68 in today’s dollars — significantly higher than the actual national average of $3.18. In 2015, the national average was $2.40, or $3.28 in today’s dollars.
Over the past 10 years or 45 years or any other time period, gasoline has become more affordable for the typical American. That reflects trends that have been decades in the making: In 2019, the United States became a net exporter of oil for the first time in more than 60 years. Oil production has steadily grown, with the largest increases coming during the Obama presidency.
All of this involves a lot of numbers, and it is unlikely that motorists are doing math in their heads as they stand at the pump. But as gas prices climb higher, those motorists have plenty to think about.
