Washington gas prices are no longer the nation's highest — but they're still up
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Washington's gas prices are no longer the highest in the nation, but they're still more than 20 cents per gallon above where they were a year ago.
Details: A gallon of gas cost $4.96 per gallon on average in Washington state as of Aug. 1, per data from GasBuddy.
- That's up 4.8% from August 2022 and far above the national average this month, which was $3.76.
- In the Seattle metro area, Aug. 1 prices were up 2.3% year over year, reaching $5.10 per gallon, Alex Fitzpatrick and Kavya Beheraj report.
Why it matters: In June, Washington's temporary dethroning of California as the state with the nation's highest gas prices prompted politicians to debate how much Washington's new carbon pricing law was to blame.
Catch up quick: Republicans have criticized the state's new cap-and-trade law, which took effect in January, as causing Washington's gas prices to rise to unacceptable levels.
- Washington's average price per gallon hit $4.91 in June, compared to $4.87 in California, per AAA.
- Democrats, including Gov. Jay Inslee, defended the new law as an important tool for curbing climate change, while suggesting oil companies were using it as an excuse to engage in price gouging.
Between the lines: Patrick De Haan, head of petroleum analysis at GasBuddy, told Axios Seattle that the situation that propelled Washington's prices ahead of California's earlier this summer was “temporary” and tied to refinery issues.
- In June, the BP Olympic pipeline was undergoing maintenance that AAA linked to a spike in gas prices in Washington and Oregon.
Yes, but: De Haan said Washington's new law still seems to be having an upward effect on gas prices, even if it isn't solely to blame for Washington's brief status as the state with the costliest gas.
- He said Washington politicians shouldn't expect that oil companies will simply absorb the costs of complying with new regulations.
- "They're just going to pass the rising cost of any policy on," whether it's gas taxes or the price of buying carbon credits, De Haan said.
The big picture: Compared to August 2022, gas prices have come down most significantly in Idaho (-14.4%), Nevada (-12.1%) and Massachusetts (-11.0%).
- They've gone up most significantly in Iowa (+6.1%), Florida (+5.7%) and Georgia (+5.7%).
What we're watching: Democrats in Washington state recently announced they'll introduce legislation to require oil companies to be more transparent about pricing, similar to a law recently passed in California.
- For their part, Republicans have called for tweaking the cap-and-trade program to lessen the effect on gas prices, including by potentially allowing the program to be temporarily suspended.
What's next: All eyes are on hurricane season, as severe storms can further disrupt refineries — thus reducing supply and raising prices.
- Saudi Arabia's continued oil production cut also stands to increase energy prices.