Gas is so expensive in Washington primarily due to a combination of high state gas taxes, a recent increase in the gas tax, and costs passed on from the state's climate initiatives such as the Climate Commitment Act (cap-and-trade program). Starting July 1, 2025, Washington raised its gas tax by another 6 cents per gallon, increasing the total state gas tax from 49.4 cents to 55.4 cents per gallon with an annual 2% inflation adjustment going forward. Additionally, the state's CO2 emissions tax adds to the cost, as companies pass those fees to consumers at the pump. The higher costs are also influenced by the fact that Washington imports most of its petroleum from pricier sources like Alaska and Canada and processes it in local refineries, unlike other states connected by pipeline. Though these taxes fund road maintenance and climate initiatives, many drivers feel the resulting costs are disproportionately high and not balanced by visible infrastructure improvements. Washington has one of the highest gas taxes in the country, contributing to prices that are about $1 per gallon higher than the national average, making it among the most expensive states for fuel behind only California and Hawaii.

Key Factors Driving Gas Prices in Washington:

• Increased state gas tax (from 49.4 to 55.4 cents/gal as of July 2025, plus 2% yearly inflation adjustment).
• Cap-and-trade program (Climate Commitment Act) adds carbon costs that fuel suppliers pass on.
• Geographic factors limit cheaper crude supply, relying on refineries along Puget Sound.
• Funding of state transportation infrastructure through heavy reliance on gas taxes.
• Regional market factors, less pipeline connection, leading to localized price variations.

Washington drivers pay significantly more due to these combined state-level regulatory, tax, and logistical factors compared to national average gas prices.