Washington has moved past California to have the most expensive gasoline in the U.S., a surge coinciding with Washington’s cap-and-trade carbon fee almost doubling California’s. …
Cap-and-trade has added another element to gas prices. Oil companies must buy one “allowance” for every ton of carbon released when their products are combusted.
Unlike a tax, carbon fees are embedded into wholesale fuel prices, making it difficult to separate out from other factors that influence pump prices, such as crude oil prices, refining costs and profits. …
Washington’s most recent cap-and-trade auction set the carbon fee at $56.01 a ton, compared to $30.33 in California. Based on the carbon content of gasoline, Washington’s fee could be adding 44.8 cents a gallon.
Cap-and-trade auctions are increasing Washington fuel prices, said Lea McCullough, executive director of the Washington Independent Energy Distributors. “Every Washington consumer is paying handily for this policy,” she said. …
The Inslee administration has maintained that cap-and-trade will have a minor impact on fuel prices. …
Washington State Dairy Federation policy director Jay Gordon said dairy farmers he talked to reported paying 45 to 60 cents a gallon in cap-and-trade surcharges before the second auction. …
“Anybody who says it isn’t raising prices is wrong,” he said. “Give me a break.” …
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