Ybarra: The state’s new specialty fuels tax is hurting Washingtonians; My legislation would fix that
Washington families are feeling the pinch everywhere they turn – at the grocery store, the gas pump, and in their monthly bills. Inflation may look better on paper, but for many people across our state, especially in rural communities, the cost of living continues to rise. One major reason for the increase is Washington’s specialty fuels tax.
Diesel and other special fuels are the backbone of our economy. They power the trucks that move our crops, carry lumber and deliver groceries and supplies to our stores. When lawmakers raise taxes on these fuels, the added cost doesn’t simply disappear, and the trucking companies don’t just absorb it. That added cost shows up in higher food prices, transportation costs, and prices for everyday goods. In short, Washingtonians pay more for almost everything. House Bill 2404 seeks to reverse a policy that has made life less affordable and failed to deliver on its promises. This legislation would roll back the special fuels tax increase that took effect July 1, 2025, restore the rate to its 2016 level, and eliminate automatic future increases. This isn’t about giveaways or special treatment; it’s about common sense and economic reality.
Supporters of the fuel tax increases claimed they would raise revenue for road improvements and reduce fuel consumption. However, the exact opposite is happening. Washington now has some of the highest fuel prices in the region, and the widening gap with neighboring states is driving fuel purchases out of state. That means Washington drivers and trucking companies are crossing the border to refuel, taking their dollars and potential tax revenue with them.
Right now, diesel costs $1.40 more per gallon on average in Washington than in Idaho. For a family with a diesel pickup, that can mean paying roughly $50 more every time they fill their tank. For long-haul truckers with tanks holding hundreds of gallons, the savings from fueling out of state can reach $300 or $400 per stop. It’s no surprise where they are choosing to buy fuel.
Every gallon purchased elsewhere is a gallon not taxed in Washington. That means less revenue for road maintenance and infrastructure, the very things this tax was supposed to support. At the same time, the higher costs hurt our economy, making Washington-grown products less competitive and putting additional pressure on consumers already stretched thin.
This issue hits rural Washington especially hard. Agriculture, transportation, and small businesses depend heavily on diesel and special fuels. Farmers can’t simply absorb higher fuel costs, and neither can freight haulers. Those costs are passed on, increasing food prices and driving up the cost of living in communities that already face higher transportation expenses and fewer alternatives.
HB 2404 offers a better path forward. By repealing the recent tax hike and ending automatic future increases, we can restore predictability for businesses and relief for families. Lower fuel costs help stabilize food prices, keep goods affordable and make it easier for Washington businesses to compete with those in neighboring states.
State policy should not make it harder for families to get by and push revenue out of Washington. Instead, we should focus on affordability, economic competitiveness, and practical solutions that actually work.
State government needs to put people first. Rolling back the specialty fuels tax is a straightforward step we can take to ease the burden on working families, support rural communities, and keep more dollars here at home. HB 2404 is about affordability, fairness and fiscal common sense, and it’s a change Washington needs now.
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Rep. Alex Ybarra, R-Quincy, represents Washington’s 13th Legislative District.