Washington’s cap-and-trade tax on fossil fuel has reached a record high, as the state threatens to overtake California for the distinction of having the highest gasoline prices in the country.
Petroleum companies, natural gas suppliers and investors paid $64.30 per carbon allowance at an auction this month, the state Department of Ecology reported Sept. 10. The price broke the previous record of $63.03 set in August 2023.
The new record can be expected to translate into 51 cents per gallon for gasoline and 64 cents per gallon for diesel. …
Regular gasoline in Washington averaged $4.62 per gallon on Sept. 11, compared to $4.64 in California, according to AAA. Oregon had the fourth-most expensive gas in the U.S. at $4.27 a gallon. …
A year ago, Washington gas prices averaged 59 cents a gallon less than California’s. With cap-and-trade’s future on the ballot, fewer entities bid for Washington’s carbon allowances, easing the upward pressure on fuel prices. …
It’s undocumented whether cap-and-trade or state spending has lowered carbon emissions. Ecology’s last carbon inventory measured emissions in 2021. Ecology is scheduled to release an inventory for 2022 and 2023 in December.
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