Video: Why are gas prices so high?

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SEATTLE – Price manipulation is not to blame for the meteoric rise in gas prices in Washington state this decade, according to Attorney General Rob McKenna.

McKenna's office released the results of a year-long investigation into gas prices Thursday. The report cites worldwide demand for oil and an inability for regional refineries to meet demands as the main reasons for rising prices.

As for why it costs significantly more to fuel up in Bellingham than it does in Seattle, McKenna blames that on cost of obtaining and transporting fuel to stations, as well as local competition.

"West Coast refineries are running at capacity," McKenna said. "We’re importing higher-priced refined gasoline to meet consumer demand, which raises average prices at the pump. Any glitches in the supply system can cause significant price spikes. Meanwhile, crude oil costs nearly four times as much as it did five years ago."

One of the experts called on in the study was University of Washington economist Dr. Keith Leffler.

"To understand factors affecting Washington prices, you have to also look outside the state," Leffler said. "The West Coast is a fuel island, separate from the rest of the U.S. domestic market. So when local supplies aren’t sufficient, petroleum distributors start searching as far as Finland and Saudi Arabia to meet demand."

McKenna says Washington's gas tax, which combined with the federal fuel tax, comes out to 54.4 cents per gallon, the highest in the nation.

"In Spokane, we found that prices are actually lower now than the state average," McKenna said. "Bellingham was the only city among those we looked at where prices couldn’t be explained by wholesale and supply cost differences or retail competition; the markup is happening at the retail level. We suspect Bellingham retailers are able to charge more because of the city’s proximity to Canada, where prices are even higher."

McKenna also points out that consumers play a role in gas prices. He says state agencies recommend the use of public transit, carpools, fuel-efficient vehicles and other means of reducing gasoline consumption. Consumers can also save money by patronizing low-cost gas stations, combining trips, and properly maintaining their cars.