When Clark County drivers stop at the pump and pay $4.94 for a gallon of gas, they likely don’t care why prices are so high. What piques their interest is that they might spend upwards of $80 for a tank of gas.
But, like seemingly everything else, a recent spike in gas prices can be turned into a political debate, with rhetoric displacing reasoned analysis. Such is the case with news that Washington has, on average, the highest gas prices in the nation.
That was the story last week, with The Seattle Times reporting that Washington had passed California for the top spot — or, more accurately, the bottom spot. As of Wednesday, according to AAA, the average in our state was $4.99 for a gallon of regular gas; in Clark County, it was $4.94. Both numbers dwarf the national average of $3.56.
There are several reasons for this. One is that the West Coast always has gas prices that exceed the national average, in part because we have relatively few refineries in this part of the country and it costs more to deliver gasoline to consumers.
Another reason is relatively high gas taxes. Washington’s tax of 49.4 cents per gallon is among the highest in the nation; combined with the federal tax, residents and visitors pay 67.8 cents per gallon in taxes.
But the spike in prices has generated some interesting discussion. As The Seattle Times reports: “Experts say Washington’s price surge is linked to the state’s latest, most-ambitious efforts to battle climate change, specifically the new carbon-pricing program launched this year that charges businesses for the greenhouse gases they emit.” Companies, some analysts say, are passing those costs along to consumers.
But according to AAA, scheduled maintenance on the Olympic pipeline has contributed to the price increase. The pipeline, operated by BP, extends 299 miles from a refinery near Blaine to Portland, and routine maintenance can delay the flow of oil.
It also can open the way for misinformation fueled by political talking points. In one example, it is frequently claimed that the United States produced more energy than it used under President Donald Trump, but is no longer energy independent.
As Robert Rapier writes for Forbes.com: “If energy independence means we don’t import oil, then that hasn’t been true since the 1940s. If it means we export more energy than we import, then we became energy independent in 2019 (following a decade of soaring oil and gas production), but we remain energy independent today. … The primary cause was a surge in domestic oil and gas production that occurred as a result of the fracking boom.”
The policies of President Joe Biden have not made the United States less energy independent than when he took office — regardless of what some media outlets persistently claim.
Through all of this, oil companies are making record profits. U.S.-owned Exxon Mobil last year reported profits of $59.1 billion; London-based Shell had profits of $39.9 billion. While American consumers struggled with soaring inflation, oil companies took advantage of increasing prices and the chaos of Russia’s invasion of Ukraine to boost their bottom line.
Congress has limited power to hold companies accountable. A bill passed the House last year to prevent price gouging in an “excessive” manner but was ignored by the Senate. Left unanswered is the question of how to define “excessive” prices for a global commodity.
Yes, gas prices can be complex. But all that really matters to consumers is the price tag.
