By Tyler Arnold
(The Center Square) – As gas prices are still hovering around record highs set this month, Virginians may have to pay a little more once a nearly 3-cent gas tax increase goes into effect Friday.
The gas tax will increase by about 2.34 cents per gallon to adjust for inflation, and the state is imposing another 0.4 cent-per-gallon fee to manage the cleanup of leaking petroleum storage tanks. The current gasoline tax is 26.2 cents per gallon. The state taxes gas wholesale rather than retail, which means it will not be directly applied to consumers but could factor into gas station prices.
On average, a gallon of gas costs about $4.67 in the commonwealth as of Thursday, according to AAA. This shows a gradual decline from about two weeks ago, but is still higher than it was at this time last month: slightly more than $4.45. The cost is also much more than it was one year ago, when it was slightly more than $2.93 per gallon.
Some regions are paying more for gas, particularly in northern Virginia. Fairfax County and Fairfax City are averaging more than $5 per gallon, Alexandria is nearing $4.99, Arlington is more than $4.96 and Loudoun is close to $4.90. Most of Hampton Roads is also paying more than the state average, but not as much as northern Virginia. In James City, the cost is close to $4.80 and in Suffolk and Isle of Wight, it’s averaging more than $4.76 per gallon. Gas in Richmond is averaging more than $4.75 cents per gallon.
Gov. Glenn Youngkin and legislative Republicans sought to provide gas tax relief amid the high prices but were defeated by Senate Democrats. One of the proposals would have instituted a three-month gas tax holiday, which was meant to provide relief to drivers and encourage summer travel. Another would have temporarily suspended the state’s recent 5-cent gas tax increase that went into effect earlier this year. That plan would have halted the hike and pushed it off until July 2023.
Democratic lawmakers argued the state needed the money for road funds, but Republicans noted that the transportation fund was already expected to have more than $1 billion in extra unanticipated revenue over this year and next year combined.
House Democrats tried to amend the gas tax holiday proposals and instead give drivers $50 rebates per vehicle, with a maximum of $100 per household. Republicans rejected that amendment and instead pushed their gas tax holiday plan to the Senate, where Democrats defeated the plan.
