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Gas prices drop again, but remain high in WA

NANCE BESTON | Hagadone News Network | UPDATED 1 day, 21 hours AGO
by NANCE BESTON
Staff Writer | January 5, 2026 5:47 PM

MOSES LAKE — Lower fuel prices continued this week, with Grant and Adams counties, Washington and national average fuel prices dropping from last week’s prices.  

Despite the drop, Washington still remains one of the most expensive states to purchase fuel in. Washington has the third-highest taxes on fuel in the nation, with most of the taxes going towards the Climate Commitment Act.  

CCA 

Washington’s Climate Commitment Act, enacted in 2021 and implemented in 2023, has reshaped how the state funds climate action. The program uses a cap-and-invest system that requires major emitters, including fuel suppliers, to purchase carbon allowances at quarterly auctions, according to the Washington Department of Ecology. While the law does not impose a direct per-gallon tax, the Department of Ecology confirms that suppliers often pass these compliance costs to consumers, resulting in higher fuel prices at the pump. This mechanism, known as “cap-at-the-rack,” means that the price of gasoline and diesel reflects the cost of carbon allowances embedded in the supply chain, according to the DOE.  

According to the TaxFoundation.org, Washington levies the third-highest tax on gasoline in the nation at nearly $0.59 per gallon, a charge separate from the CCA-associated costs. California taxes the most at about $0.71 per gallon with Illinois following close behind at $0.66 per gallon.  

Since the CCA launch, allowance auctions have generated more than $3 billion in revenue for the state, according to DOE. These funds are deposited into dedicated accounts established by law, including the Carbon Emissions Reduction Account and the Climate Investment Account. These funds have helped pay for nearly 3,600 projects statewide.   

In Adams County, the state has spent nearly $28.9 million on around 86 different projects. In Grant County, the state has spent nearly $227 million on around 690 different projects, according to the Washington Climate Action Plan (climate.wa.gov).  

According to the DOE, the majority of these dollars support projects that reduce greenhouse gas emissions in transportation, expand public transit, and promote active transportation options such as biking and walking. Administrative costs are capped at five percent, ensuring that most revenue flows directly into climate programs, according to RCW 70A.65.  

The CCA has been seriously criticized by Republican politicians and consumers for the impact it has on prices for gas and diesel at the pump, with Rep. Jim Walsh, chair for the Washington Republican Party calling it a “failed cap-and-trade scheme.”  

Fuel costs in neighboring Idaho, which does not have a cap-and-trade and only charges 33 cents per gallon for gas and diesel, average about $2.82, compared to $3.84 in Washington. 

Grant and Adams  

Grant County saw a decrease of nearly 7 cents this week, putting the average fuel price at $3.79 in the county. This marks the eighth week in a row where fuel prices have dropped and the fourth week in a row where fuel is sitting under $4. As of a month ago, fuel prices were sitting at $4.04, or 25 cents more expensive than currently.  

Adams County experienced the same relief, dropping 14 cents from last week to $3.85. The county has only seen decreased prices for three weeks in a row, but has been below $4 for five weeks. As of a month ago, prices were sitting at $3.92, or 7 cents cheaper than the current price. 

Grant and Adams counties remain in the middle of the pack for fuel prices in the state. Pacific County sits at the highest this week at $4.28, and Asotin County remains the lowest at $2.75. This means there is a range of nearly $1.53 from the cheapest to the most expensive fuel in the state.  

Washington 

The state saw a decrease of nearly five cents this week, putting the average fuel price at $3.84. This week marks the sixteenth week in a row with decreasing fuel prices and the third week in a row where the average is below $4. As of a month ago, prices were sitting at $4.12, or 28 cents more expensive than currently. As of a year ago, prices were also higher, sitting at $3.90, or six cents more expensive.  

Washington has the third-highest gas prices nationally. Only California at $4.27 and Hawaii at $4.41 have more expensive fuel.  

National  

Across the nation, average gas prices also saw a decrease of two cents from last week to the current week. The average fuel price is $2.81. This is the sixth week in a row where fuel prices have decreased and the fifth week in a row where it has been under $3. As of a month ago, prices were sitting 17 cents higher at $2.98. As of a year ago, prices were even higher, sitting at $3.06, or 25 cents more expensive than present.  

      


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