Inslee chastises oil companies over Washington's gas prices | Columbia Basin - Source ONE News

Inslee chastises oil companies over Washington's gas prices | Columbia Basin | yoursourceone.com

Washington state, for the first time in its history, has witnessed the highest gasoline prices in the nation, drawing the ire of its governor, Jay Inslee. Inslee alleges that oil and gas companies are retaliating against the state's stringent climate policies and has called for regulatory legislation.

In a press conference held Thursday, Governor Inslee demanded transparency from fuel companies, suggesting the need to "open up the books" and face repercussions for potential price gouging. "You know what they’re doing with that money? They’re giving it to their CEO,” Inslee accused, singling out the CEO of Exxon Oil who made $35 million last year while the prices at the pump soared.

As per AAA, the average price for a gallon of regular unleaded gas in Washington stands at $4.93, while mid-grade gas costs around $5.15 and premium gasoline averages at $5.36. This contrasts sharply with the nationwide average, currently at $3.58.

“We intend to rein in the terrible pollution that the oil and gas industry is causing across our state and our nation and we won’t stand for it,” Inslee vowed, as he faces mounting criticism for the rising fuel costs.

“We should not yield an inch to these rapacious oil and gas companies that are now using [the Climate Commitment Act] as an excuse,” Inslee said, as he defended the urgency of capping carbon pollution and reinvesting in solutions like heat pumps and electric buses that benefit communities and children. “Instead, we should hold them accountable for their outrageous pricing. We’re not against profits but we’re against price gouging."

Critics, including Rep. Mary Dye, R-Pomeroy, lay the blame at the feet of the state government, arguing that the new carbon emissions charges are the true cause of the price hikes. Dye stated, “Washington state also has the eighth-highest gas tax in the nation at 49.4 cents-per-gallon of fuel, yet we have terrible roads, unreliable ferries, an alarming increase in traffic fatalities, and horrible traffic congestion.”

The state has recently implemented a cap-and-invest program under the Climate Commitment Act (CCA) of 2021, which puts a limit on carbon emissions in the state and requires businesses to obtain allowances for their greenhouse gas emissions.

Despite the governor's claims, many believe the cap-and-invest program is having a direct impact on fuel costs. According to Todd Myers of the Washington Policy Center, this will add approximately 45 cents more per gallon of gas and 54 cents more for diesel for Washingtonians.

Inslee's response to the criticism revolves around holding the oil companies accountable and creating a larger market for carbon credits. The governor dismissed allegations that the government was responsible for the price increases, instead, pointing fingers at the "greed and avarice" of oil companies.

The cap-and-invest program has seen success, raising nearly $300 million through its first auction on February 28 this year, and a second auction last month.

Climate Solutions, a group dedicated to addressing the global climate crisis, backed Governor Inslee's stance. The organization challenged the Western States Petroleum Association (WSPA), a body whose members include Chevron, for allegedly spending millions to undermine the cap-and-invest program and other climate policies.

Leah Missik, a Senior Policy Manager with Climate Solutions, wrote, “Just last week, a spokesperson for Chevron blamed high gas prices on Washington’s new climate policies. He said, ‘it’s not our job to go bankrupt to help the state avoid the consequences of its programs. There’s no way for a refiner to absorb those costs; they could literally bankrupt the industry.’ Bankrupt? Chevron posted a $36.5 billion profit last year — a record high.”

However, Myers and the Washington Policy Center contended that the claims made by Governor Inslee and Climate Solutions are “entirely false” regarding oil companies intentionally increasing prices, noting that the latter are not including expenses in their calculations.

“Blaming the increase in gas prices that has occurred this year on data from last December is obviously inaccurate, but the governor and Climate Solutions are looking for the closest tool at hand, even if it is misleading,” Myers asserted. “That amount [of money] cited by the governor and others doesn’t go to the oil companies. That margin goes to gas stations, companies like Costco, Safeway, and other gas retailers.”

As Washington grapples with these record-breaking gas prices, the debate between government, environmental groups, and the oil and gas industry shows no sign of resolution.