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Your Next Fill-up Could Cost More as States Raise Fuel Taxes
The increase is the first annual inflation adjustment under a 2025 law, and officials say transportation revenue will still fall millions short.
Starting July 1, Washington's per-gallon fuel tax will climb 1.1 cents to 56.5 cents, marking the first automatic inflationary adjustment mandated by a 2025 law signed by Governor Bob Ferguson.
The 2025 law allows annual two percent increases without requiring public or legislative votes; diesel taxes simultaneously rise by two percent to 59.5 cents per gallon.
According to AAA, Washingtonians already pay about $5.32 for regular unleaded, significantly more than residents in Oregon and Idaho, where prices typically range $0.50 to $1.00 lower.
Chief economist Dave Reich issued a new forecast on June 22 showing revenue collections will be $36 million lower than anticipated for the current transportation budget due to declining fuel consumption.
Projections show a $130 million shortfall for the 2027-29 spending plan, which lawmakers and Ferguson will write during the next legislative session amid mounting budget pressures.