GAS PRICES IN VA CONTINUE TO RISE THANKS TO NEW GAS TAX

On July 1, the Virginia gas tax crept up 5 cents to 26.2 cents per gallon, and the diesel fuel tax increased from 20.2 cents to 27 cents.

Along with the state levy, there are federal and local gas taxes.

The federal gas tax is 18.4 cents per gallon, which hasn’t changed since 1993.

There is a local 2.1-percent tax on wholesale gas for localities that are partners with the Virginia Railway Express, which includes Fredericksburg and the counties of Stafford and Spotsylvania. The localities use a portion of the revenue from that tax on area transportation projects.

This year’s state gas tax increase is the second recent bump approved in Virginia, with the first 5-cent increase taking effect July 2020 (when driving dropped precipitously because of the pandemic).

Beginning July 2022, the gas tax will be adjusted annually for inflation.

The U.S. Energy Information Administration estimates that state and federal taxes account for 19 percent of the cost at the pump. The average price for a gallon of gas in Virginia on Friday was $2.93. That figure hasn’t changed in the past month, but is up from $1.96 a year ago, according to AAA.

 

— Richmond Times Dispatch, 7/7/21