Washington Gas Prices Hit New Record at $5.75 a Gallon as Iran War, Refinery Changes, and State Taxes Converge

Several forces are converging to drive the increases. The ongoing conflict in Iran has constrained global oil supply, with the Strait of Hormuz remaining effectively closed and no resolution in sight. On top of that, refineries are in the process of switching to their summer blend, a seasonal transition that typically adds cost at the pump regardless of global conditions. Together, those two factors are providing the underlying pressure that is pushing wholesale prices higher.

Washington’s own cost structure is amplifying the impact on drivers. For every gallon of gas purchased in the state, drivers are paying 73 cents in combined state and federal taxes, with more than 55 cents of that figure representing state-level charges alone. Oil industry lobbyists said drivers are paying an additional 40 to 60 cents per gallon from costs passed on as a result of the state’s Climate Commitment Act, bringing Washington’s per-gallon premium over the national average to among the highest in the country.

The idea of a gas tax holiday has been raised again as a potential relief measure for household budgets, but state leaders have rejected the concept. The governor’s office was being pressed again on Wednesday to reconsider the idea, with no indication a change in position is forthcoming.

With the Iran conflict showing no signs of resolution and no near-term changes expected to Washington’s fuel tax structure, there is little reason to expect prices will stabilize soon. Analysts said there is currently no clear signal that a peak is approaching.