Gas and diesel prices in Washington state have hit record highs over the past few months. And in a state that already has one of the highest average prices in the country, the extra cost has put a strain on bottom lines.
“Times are tough,” President and CEO of the Washington Trucking Association Sheri Call said. “It’s very tough for the trucking industry, especially in Washington.”
Call said high fuel prices are a “disruption to the industry,” and can sometimes mean things like equipment upgrades are sidelined, other times, though, companies have no choice but to pass costs on to consumers.
“Most of the industry has mechanisms to pass those costs along, and eventually those costs do get passed along, reflected in the price of goods,” Call said. “But 90% of the industry is small business, who have a harder time passing those costs along, so it really becomes a cash flow issue for those companies.”
The high prices in Washington can be attributed to a number of factors, like the war in Iran, and the state’s gas tax, also one of the highest rates in the country. …
But there’s another factor at play, that some say contributes greatly to the high fuel prices in Washington: the Climate Commitment Act (CCA).
The CCA, essentially, asks fuel companies to bid on carbon emissions, paying more money to the state in order to operate in Washington. Critics of the act argue, in turn, those companies pass the extra charge onto consumers, reflected in the state’s high gas prices.
“We do believe that if we put a pause on the Climate Commitment Act, it could have a major impact,” Call said. “Probably more so than actually putting a pause on the gas tax.”
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