Across the US, drivers are grappling with fluctuating gas prices, with a national average hovering around $3.52 per gallon. However, this figure masks significant state-level variations. While Mississippi offers some relief with prices around $2.96, Washington and California stand out with eye-watering figures nearing $5 a gallon. What's driving this disparity?
While factors like state gas taxes and refinery regulations play a role, the primary culprit appears to be climate-focused policies. Both Washington and California have implemented aggressive strategies to reduce carbon emissions, which directly impact gasoline prices. California's Low Carbon Fuel Standard and cap-and-trade program add an estimated 47 cents per gallon. Washington's recently enacted Climate Commitment Act has similarly pushed prices up by 35-52 cents, according to expert analysis.
Initially, proponents of these policies acknowledged the potential for price hikes, arguing they were necessary to incentivize a shift away from gasoline. However, faced with public discontent, some now point fingers at corporate greed, alleging market manipulation. This narrative clashes with the reality that price increases align with the projected costs of the climate programs.
Washington Governor Jay Inslee, a staunch climate advocate, has also deflected criticism, attributing price increases to factors like pipeline maintenance. Yet, this explanation doesn't hold water when comparing Washington's prices to its neighbor, Oregon, which shares the same pipeline yet enjoys significantly lower gas prices. Governor Inslee remains committed to his climate agenda, resisting calls to mitigate the impact on consumers.
The situation in Washington and California serves as a stark warning for other states and the federal government. Policies that penalize gasoline use for climate change goals will inevitably translate to higher prices at the pump. The Biden administration, which shares a similar climate agenda, is steadily implementing policies – from restricting oil leasing to opposing pipelines – that could eventually push national gas prices towards the levels currently seen in California and Washington.
