(The Center Square) – Washington drivers are facing a brutal spring at the pump as gasoline prices in the state shatter all-time records, driven by a combination of the state’s carbon policy and gas taxes, along with regional refinery constraints and a volatile global oil market.
As of Monday, the average price for a gallon of regular unleaded in Washington is above $5.67, surpassing the previous statewide record of $5.56 set in 2022.
In major hubs like Seattle, the average has surged to a record $5.91, while residents in San Juan County are paying an average of $6.60 per gallon.
The spike has widened the gap between Washington and the rest of the country. While the AAA national average sits at $4.457, Washingtonians are paying roughly $1.10 to $1.40 more than the average American driver.
As of Monday, Washington is one of the most expensive states for fuel in the U.S., trailing only California, according to AAA. Gas prices across the state have risen 20 cents on average in just the last week.
Policy experts point to Washington’s Climate Commitment Act and its state gas taxes as a primary differentiator between the state and its neighbors.
“The finger always gets pointed at the companies who either make the product or sell the product, but the number one beneficiary every time you buy a gallon of gas is the state of Washington,” said Todd Myers, vice president of research at the Washington Policy Center in an interview Monday with The Center Square.
State program adds costs
The cap-and-invest program, which requires major polluters to buy allowances for carbon emissions, has added an estimated 52 to 58 cents per gallon to the cost of gasoline.
The impact is most visible at the state’s borders. Drivers in eastern Washington often see prices more than $1 or more higher than those across the border in Idaho, which does not have a carbon pricing program and maintains lower state fuel taxes.
While Oregon also has climate policies, Washington’s specific CCA structure has pushed its prices consistently above its southern neighbor by roughly 30 to 45 cents.
Adding to the pressure of carbon fees is Washington’s base gasoline excise tax, which surged to 55.4 cents per gallon following a state transportation funding package that took effect in July 2025.
This 6-cent hike cemented Washington’s position as having the third-highest state gas tax in the nation, trailing only California and Pennsylvania.
Unlike the CCA, which fluctuates based on carbon auction market prices, the 55.4-cent tax is a fixed state fee dedicated primarily to road construction and maintenance.
Beginning in July of this year, this tax is scheduled to increase automatically by 2 percent annually to keep pace with inflation, ensuring that the baseline price for Washington fuel will continue to rise, even if global oil markets stabilize.
When the 55.4-cent excise tax is combined with the roughly 62 cents in estimated costs passed down from the CCA, Washington drivers are paying more than $1.17 per gallon in state-imposed taxes and fees before the actual cost of the fuel is even calculated.
“Just those two policies, the CCA and the gas tax, add over a dollar a gallon, which is far more than gas stations are profiting, certainly more than gas companies are profiting,” Myers said.
When the 18.4-cent federal gas tax is included, the total tax burden on a single gallon of regular unleaded in Washington nears $1.36.
No tax holiday
While states like Georgia, Indiana, and Utah have implemented temporary “gas tax holidays” to provide relief amid the 2026 global energy crisis, Washington leadership has largely resisted such moves.
“If they were going to suspend one, they should suspend the CO2 (CCA) tax,” Myers said. “Because that’s really just a tax for general purposes that the Legislature can do whatever they want with.”
Proponents of the current structure argue the revenue is critical for the state’s massive infrastructure backlog and its transition toward a zero-emissions transportation grid by 2035.
Myers said since the gas tax goes towards road maintenance, suspending it would lead to more issues with the state’s already troubled roads.
Beyond state policies, other factors are squeezing the West Coast.
The region is grappling with a long-term loss of refinery capacity, which has tightened supply. Seasonal maintenance at many facilities has further restricted the flow of gasoline.
Geopolitical tensions, including recent retaliatory strikes involving Iran that have targeted energy infrastructure and shipping lanes in the Persian Gulf and a blockade of the Straight of Hormuz, have sent global crude prices over $100 a barrel as of Monday.
While some state lawmakers have proposed using CCA revenue to offset the gas tax, those efforts have stalled in Olympia, leaving drivers to bear the full weight of the record-high costs.
