Latest WA Carbon Auction Likely to Boost Gas Prices $.45 Cents

Washington State already has the third-highest gas prices in the nation, and they appear to be getting ready to rise again.

Todd Meyers of the Washington Policy Center, a non-partisan think tank, has been tracking the cap and trade situation since it went into effect in January. It's a carbon tax on all businesses that the state believes creates pollution.

Businesses have to purchase carbon credits, which allegedly 'offset' their emissions. This carbon tax is hammering the fossil fuels industry. We have seen the average cost of regular unleaded in WA state rise The first credit auction was held in February, the second on May 31st. A third one is coming in August.

Meyers reports the second auction raised a lot more funds for the state, as the prices paid for the credits increased dramatically. The Center Square reports Department of Ecology officials allegedly won't know the full impact until these carbon transactions "settle."

Meyer's data shows the prices of regular unleaded are likely to rise as much as $.45 cents per gallon beginning soon. The cost of diesel will be even higher.

According to AAA data for June 8th, the average statewide price in WA is now $4.74 for regular unleaded, with Meyer's data, it is likely that the price will soon climb to at least $5.00 soon, and could hit as high as $5.20.

The national average price is $3.56. Oregon is $4.39, CA $4.87.