Seattle gas prices hit all-time record overnight as Iran war, Climate Commitment Act create historic squeeze at the pump

Seattle drivers woke up to a record they didn’t want.

Overnight, the average price for a gallon of regular unleaded in the Seattle area hit $5.72, surpassing the all-time record set in June 2022, according to AAA. Statewide, Washington’s average is $5.51, just 5 cents shy of the state record. The national average is $4.18.

That means Seattle drivers are paying $1.54 more per gallon than the average American. And unlike the last time prices hit this level, today’s record comes with a surcharge that didn’t exist in 2022.

This record is different from the last one

When Washington set its previous gas price record in 2022, the Climate Commitment Act (CCA) hadn’t taken effect yet. That matters. The CCA’s cap-and-invest carbon auction program adds an estimated 52 to 57 cents per gallon as a pass-through cost to Washington drivers, on top of the state’s 55.4-cent-per-gallon gas tax, the third-highest in the country.

Put another way: the 2022 record was driven entirely by global forces. Today’s record has a made-in-Olympia surcharge baked in.

Combined, Washington’s state gas tax and CCA-related costs add roughly $1.30 to $1.45 per gallon compared to states without similar programs. Since the CCA took effect, Washington drivers have paid an estimated extra $700 at the pump attributable to the program alone.

The Idaho comparison tells the story simply. Washington drivers living near the Idaho border are paying more than $1 per gallon more than their neighbors across the state line. Same president. Different governor. Different policy.

The global factor: The Strait of Hormuz

The international backdrop is real and significant. The ongoing conflict in Iran has disrupted global oil flows through the Strait of Hormuz, adding an estimated $300 million a day to U.S. fuel costs. Analysts warn West Coast prices could reach $8 a gallon if the conflict escalates further. Even if the Strait reopened tomorrow, prices would remain elevated because of the massive volume of oil already lost to the market.

Washington is feeling the global crunch harder than almost anywhere else because it’s starting from a higher baseline. The CCA didn’t cause the Iran war. But it ensures Washington drivers pay more for it than nearly anyone else in the country.

The political pressure is building

State Senator Drew MacEwen, R-Shelton, is calling for an immediate special legislative session to address fuel prices and utility rate hikes, framing it as an energy affordability crisis caused by made-in-Olympia policies. U.S. Representative Michael Baumgartner has urged Washington Governor Bob Ferguson to temporarily pause CCA carbon auction costs.

A gas tax pause remains unlikely. The tax is a crucial funding source for road repairs and infrastructure, and Washington has not followed states like Georgia and Indiana in suspending it. Making matters worse, the gas tax is scheduled to increase by another 2% on July 1.

State Representative Andrew Barkis has pitched using CCA revenue, which generates billions of dollars, to partially offset the gas tax burden, but the idea has not gained traction in Olympia.

For Seattle drivers already paying the highest gas prices in the city’s recorded history, the policy debate in Olympia may feel distant. The pain at the pump is immediate.

Track current Washington state gas prices at GasBuddy and AAA.

Charlie Harger is the host of “Seattle’s Morning News” on KIRO Newsradio. You can read more of his stories and commentaries here. Follow Charlie on X and email him here. 

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