WASHINGTON – The reduction in Virginia’s gas tax is starting to make a difference at the pump. Sunday’s average price in Virginia was $3.39 a gallon for unleaded. That’s 20 cents a gallon cheaper than Maryland and 42 cents less than the District of Columbia.
There are a lot of reasons why, but the biggest is the July 1 drop in the state gas tax.
It used to be a standard 17.5 cents, but is now trimmed to as low as 11.1 a gallon based on the wholesale price of gas.
It’s all part of the big transportation package approved by the Virginia General Assembly which shifted the tax burden for roads by raising the state sales tax.
In northern Virginia and Hampton Roads, the sales tax went up from 5 percent to 6 percent on July 1, while the rest of the state will pay 5.3 percent. That means you are paying less for gas but more for other purchases.
Triple-A Mid-Atlantic says gas across the entire D.C. region dropped from $3.65 last week to an average $3.60 on Friday.
The automobile club is predicting gas prices will continue to drop this fall, barring any disruption at the refineries from the hurricane season.