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  • Axios Richmond

    Why Virginia drivers are facing higher gas prices

    By Sabrina Moreno,

    14 days ago

    Virginia drivers might notice they're paying more at the pump this summer.

    The big picture: Last week, the state's motor fuels tax rate increased from 29.8 cents per gallon to 30.8.


    • The one-cent jump technically isn't much, but 30.8 cents per gallon is nearly double the tax of 16.2 cents per gallon Virginians were paying in 2019 on regular gas.
    • Virginia's sales tax rate for gas also went up from 8.7 cents to 9, per the Department of Motor Vehicles .
    • That brings the total state taxes paid while filling up your tank to 39.8 cents per gallon.

    Between the lines: For a car with a 16-gallon tank, for example, that's about $6.44 paid in state taxes compared to roughly $3.86 in 2019.

    State of play: In 2020, Virginia lawmakers voted to raise the state's gas tax for the first time in over 30 years, reported the Washington Post .

    Flashback: In 2022, the Virginia Senate rejected Gov. Youngkin's proposal for a gas tax holiday from May 1 through July 31.

    • At the time, suspending the gas tax in that time frame would have cost the state about $437 million, per the Virginia Mercury .
    • Critics said it would affect funding for transportation projects. Proponents said it'd give money back to Virginians.
    Data: U.S. Census Bureau; Note: 3-quarter moving average; Chart: Axios Visuals

    The latest: An Axios analysis of census data found that Virginia's gas tax is accounting for a greater share of the state's tax revenue.

    • At the end of last year (or Q4), the state's gas tax was 5.4% of the state tax revenue — the most of any quarter since early 2019.
    • That's a higher percentage than California (3.4%), or Illinois (4.9%), which have two of the highest state gas tax rates in the U.S.

    What's next: The uptick in holiday travel could increase gas prices, too, according to AAA .

    • But so far, AAA data shows the average Richmond-area gas prices are about $3.38, which is similar to last month's $3.39.
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