Gas Prices in Washington Soar as New Fuel and CO2 Taxes Take Effect

Starting July 1, Washington will see a sharp rise in gas prices, adding pressure on already high fuel costs. With new taxes on fuel and CO2 emissions, drivers are facing an increase of up to 12 cents per gallon. As the Fourth of July travel rush approaches, many are concerned about the financial impact on their holiday plans.

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Washington gas price rise
Washington gas price rise. credit : shutterstock | en.Econostrum.info - United States

As the Fourth of July holiday approaches, Washington drivers face a significant increase in fuel costs due to new state taxes. Starting on July 1, 2025, a six-cent increase in the state’s gas tax will add to already high fuel prices, which are currently well above the national average. 

With additional hikes from the state’s CO2 emissions tax, Washington’s gas prices are expected to climb further, exacerbating concerns among commuters and holiday travellers.

Rising Costs Fuel Frustration

Washington state residents have long dealt with some of the highest fuel prices in the country, and the recent tax hikes are only expected to make matters worse. As of now, the average price for a gallon of gas in Washington stands at around $4.44—$1.24 higher than the national average, according to the American Automobile Association (AAA). 

The new six-cent gas tax, set to take effect next week, is aimed at funding road projects and bridge maintenance across the state. Additionally, the state’s CO2 emissions tax, which aims to reduce carbon emissions, will increase by another six cents.

These taxes are set to add up to 12 cents per gallon to the price of fuel in the coming months, further stressing residents, particularly as travel demand peaks for the summer holidays. 

Seattle local Timothy Durden expressed frustration, noting that infrastructure improvements have not kept pace with the rising costs: “Seattle doesn’t pay [any] money on the infrastructure here,” he said, citing the poor condition of the city’s roads.

Public Reaction to the Price Increase

Despite the clear connection between these tax increases and rising gas prices, state officials insist that the climate-related taxes are not the primary driver of these hikes. A spokesperson from the Washington State Department of Ecology noted that the recent increase of just over three cents per gallon was largely in line with national trends. 

However, Washington Policy Center Vice President Todd Myers pointed out that the combined impact of the taxes could see a much higher increase than usual. 

“So you’ll see about 12 cents per gallon higher than what it would be just in this month alone in addition to the typical market fluctuations that you see in the summer,” Myers said, referring to both the gas and CO2 taxes.

Public opinion on these tax hikes is divided. While some residents accept the need for infrastructure investment and environmental measures, many others feel the financial burden is too great, especially considering that the state’s infrastructure improvements do not appear to match the growing cost of fuel. 

In particular, drivers near Seattle-Tacoma International Airport are already paying close to $5 per gallon, further heightening concerns about affordability and the potential impact on holiday travel plans.

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