Gas pains

||| BY LIN MCNULTY, theORCASONIAN EDITOR |||

As of Aug. 10, 2023, it cost $4.056 for regular gasoline in Idaho, according to AAA. In Washington, regular gasoline cost is $5.017. That’s a price difference of nearly a dollar a gallon. Even Oregon was paying nearly 34 cents a gallon LESS than Washington.

As can be seen in the chart below, Washington’s and Oregon’s gas prices have historically been similar (red and blue line overlap), but the prices diverged in January 2023 when the cap-and-trade and low carbon fuel programs enacted in 2021 took effect.

If oil companies are the primary reason for higher gas prices, they would charge more for every state – not just Washington. But oil companies are not why Washington consumers are being gouged. Instead, the Climate Commitment Act (CCA) is responsible for at least 50 cents a gallon in the price of fuel in Washington.

Washingtonians also pay 49.4 cents per gallon for state gas taxes. We have the eighth highest state gasoline taxes in the nation. Combine the CCA cost and the state gas tax, it equals to nearly a dollar a gallon. Washington state government is collecting that money. That’s why Idaho is cheaper.

Add in the cost for transporting fuel from the refinery across the Salish Sea to the San Juans and today, on Orcas Island, the price for regular gasoline at the pump is $5.19 a gallon at Country Corner and $4.78 a gallon at Island Supply. On San Juan, price for regular gas is $4.50 at the Shell station on Carter Avenue and $4.56 at the 76 station on Argyle Avenue.

As of January 2025, Washington state’s average gas price is $3.908 per gallon for regular unleaded fuel, making it one of the states with the highest gas prices in the U.S. AAA Gas Prices

Gasoline prices in Washington State are primarily determined by market forces of supply and demand, with several key factors influencing these dynamics:

• Crude Oil Prices: The cost of crude oil significantly impacts gasoline prices, as it is the primary raw material for fuel production. Fluctuations in global oil markets directly affect local gas prices. Investopedia
• Supply and Demand: Increased demand, especially during peak travel seasons, can drive prices up. Conversely, disruptions in supply due to refinery maintenance or unexpected outages can also lead to price increases. Washington Senate Democrats
• Taxes: Federal, state, and local taxes contribute to the retail price of gasoline. In Washington, state taxes are a significant component of the overall cost per gallon. U.S. Energy Information Administration
• Regulatory Policies: Washington’s Climate Commitment Act (CCA), implemented to reduce carbon emissions, has introduced a cap-and-invest system requiring businesses to purchase allowances for their emissions. This program has been associated with increases in gas prices, as companies may pass on the additional costs to consumers. Clean Prosperous Institute

While gas stations set the final retail prices, they do so based on these underlying factors. The Washington State Attorney General’s Office monitors gasoline pricing to detect potential anticompetitive behavior but does not directly control prices. Washington Attorney General

In summary, gasoline prices in Washington are influenced by a combination of global market trends, state-specific taxes, regulatory policies, and local supply and demand conditions.

Note: Island Petroleum, transporter of our gasoline resources from the refinery in Anacortes, could not be reached for comment.