Why aren’t our gas prices falling?

As crude oil prices have eased in recent weeks, motorists across much of the country have begun seeing relief at the gas pump.

Not so much in Washington.

While gasoline prices have declined modestly in the Evergreen State, they remain among the highest in the nation and have not fallen nearly as much as prices in many other states. …

According to AAA, the national average price of regular gasoline has been trending downward following lower crude oil prices and easing tensions in the Middle East. Washington, however, continues to rank among the nation’s most expensive states for gasoline, typically trailing only California and Hawaii.

Several factors contribute to the difference. One of the most visible is Washington’s fuel tax.

On July 1, the state’s gasoline tax increased from 55.4 cents to 56.5 cents per gallon, making it one of the highest state gasoline taxes in the country. …

Another significant factor is Washington’s Climate Commitment Act, the state’s carbon cap-and-invest program. Under the law, fuel suppliers purchase carbon allowances, costs that are generally passed along to consumers.

… Various studies have estimated the increase at anywhere from roughly 20 to 50 cents per gallon, while critics of the program argue the impact is even greater. Although there is disagreement over the precise amount, economists generally agree the program contributes to Washington’s higher gasoline prices. …

Cross the Columbia River into Oregon, and gasoline prices are often noticeably lower despite both states drawing from the same general regional fuel market. Oregon has a lower state gasoline tax and does not operate under Washington’s Climate Commitment Act, making it a useful comparison when examining how state policies influence prices at the pump.

The result is that Washington motorists frequently pay more than drivers in neighboring states, even when global oil prices are falling.

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