What's driving up gas prices in Washington and 4 ways you can save

Yahoo

28-04-2025

Drivers in Washington are frustrated at the high price of gas and the condition of the state's highways. Despite the Evergreen State having the third-highest gas tax in the country, our roads consistently rank among the top 10 for worst roads in the country.
Construction Coverage ranks Washington as the #10 state with the worst roads, and U.S. News and World Report ranks Washington #7 for worst road quality.
State lawmakers are pointing the finger at inflation.
'We see egg prices at the grocery store. Well, concrete prices have been going up even faster,' said Sen. Marko Liias, D-Edmonds, who chairs the Senate Transportation Committee. 'So buying power for our transportation investments is falling short each year. And that means we're repaving less and less highway,' he said.
That was the biggest driver behind lawmakers passing an additional six-cent tax per gallon on gasoline over the weekend. But the factors making fuel so expensive in the Evergreen State go far beyond taxes - and will continue to drive up costs for drivers.
GAX TAX:
The change in the gas tax will kick in July 1, 2025, increasing the rate from 49.4 cents to 55.4 cents per gallon. Making fuel even more expensive, the gas tax will also increase by 2% every year.
Diesel drivers will see a hike too - 3 cents in July, and another 3 cents in 2027, then a 2 percent hike annually starting the following year.
Over six years, the new tax will raise $3.2 billion for the state's transportation budget.
Drivers KIRO 7 spoke with are somewhere between furious and disappointed.
'Yeah, it sucks,' said Joel Garland, a driver from Federal Way. 'The regular people were struggling just to try to survive already,' he said.
Gas taxes in Washington state are the third highest in the country already, behind California and Pennsylvania. The six-cent increase keeps us in third place, but it doesn't count in other factors driving up the price.
Why is gasoline already so expensive in Washington? Our state has no income tax, so lawmakers heavily rely on the gas tax to fund road projects.
The state constitution mandates that gas tax funding be used for things like building and repairing roads and Washington State Patrol policing highways.
'The highest portion of our revenues is the gas tax. It's unfortunate that it's that way, but the reality is if you're going to raise money, you have to raise the gas taxes,' said Rep. Jake Fey, D-Tacoma, who chairs the House Transportation Committee.
GEOGRAPHY:
Another reason for our more expensive fuel: Washington's primary petroleum supplier is pricier, coming from Alaska and Canada instead of the South or Southeast because of geography - the mountain ranges block easy transport of crude oil to the west. The bulk of Washington's crude oil is turned into gasoline at one of our state's five refineries.
CAP AND TRADE:
Plus, Washington's Climate Commitment Act, or cap and trade program, charges the state's biggest carbon emitters for carbon credits past a certain level. Companies end up passing that cost along to you.
'Anytime a gallon of gas is sold in Washington State, whether it is produced in state or out of state, it gets taxed,' said Todd Myers, vice president of research at the Washington Policy Center. The think tank has been critical of Washington's cap and trade policy.
It says currently, cap and trade adds about 40 cents per gallon for the consumer (though the Washington Department of Ecology believes the number is lower).
And brace yourselves - soon, you'll be shelling out even more. In 2030, Washington is dramatically lowering its carbon emissions target, which means companies will have to pay even more for credits - and you'll likely pay more to fill up.
'Should people really be preparing to pay significantly more at the pump?' KIRO7's Deedee Sun asked Myers.
'Yeah, absolutely,' he said. 'The only question is how much more,' Myers said.
People say the gas prices are surging at a time when they're already concerned about making ends meet.
'What would you say to your constituents who are worried?' KIRO7's Deedee Sun asked Sen. Liias, D-Edmonds.
'Construction inflation has moved faster even than inflation,' Liias said. He says that's part of the reason why the state's transportation budget faced such a big budget gap. 'I'm seeing more potholes than I can remember in my lifetime on our highways,' he said.
He points to aging infrastructure – like the Fairfax Bridge to Mount Rainier that had to be shut down this month, to things like repair work such as Revive I-5.
'That's what the gas tax pays for. So we're trying to balance that with the reality that folks are having a tough time affording,' Liias said.
However, KIRO7 discovered, cap and trade is generating more money than expected.
'Why can't we use that money for roads instead?' Sun asked Rep. Fey.
'We made a promise about how this money was going to be spent,' Fey said. Lawmakers say cap and trade money is intended for things that lower greenhouse gases – like electrifying ferries, getting kids free rides on public transit, and adding bike lanes.
'To do a substitution, I think, goes against promises that we made,' Fey said. 'We're doing the best we can,' he said.
SAVING AT THE PUMP:
So what can you do to save money at the pump? KIRO7 checked in with AAA Washington for tested ways to cut down on spending.
1) You must price compare. Gas Buddy or AAA's apps both help you do that. For example, a Chevron in Renton last week was charging $4.57 per gallon when you pay with credit or debit. A few blocks away, the Fred Meyer was charging $4.19 – or 38 cents less. That's a difference of $300 dollars per year!
2) Remember some stations offer a discount if you pay with cash. That same Renton Chevron was charging 14 cents less per gallon for cash purchasers.
3) Slow down: AAA Washington says, 'reducing highway speeds by 5 to 10 mph can increase fuel economy by as much as 14 percent.'
4) Avoiding excessive idling. AAA says a car engine uses up to half a gallon per hour when idling. Starting up a warm engine uses about 10 seconds worth of fuel. So if you're going to be stopped for more than a minute and it's safe to turn off your car, you'll save fuel if you do so.
Meanwhile some drivers say what would help most?
'Well, just quit taxing us,' said Nelson Vitous, a driver in Renton.