Virginia Gas Prices Down, Sales Taxes Up on July 1

Written by Beth Lawton

Just ahead of Fourth of July weekend, the price of gas in Virginia will be dropping — but you'll be paying more for things when you're not at the pump.

You can thank your state representatives and senators, who passed a transportation bill earlier this year. It goes into effect July 1.

Taxes on a gallon of regular gas will go down about 6 cents per gallon in the commonwealth. Instead of 17.5 cents per gallon, Virginia motorists will be paying about 11.7 cents per gallon in taxes on regular gasoline, according to the state Petroleum, Convenience and Grocery Association. The decrease could be slightly less in Northern Virginia due to regional taxes for transportation projects.

But cheaper gas comes with a cost: Also on July 1, Virginia’s sales tax will increase from 5 percent to 5.3 percent, the motor vehicle sales tax will increases from 3 percent to 4.3 percent and residents will pay higher annual fees for hybrid car drivers. In February, state Sen. Janet Howell said those higher fees for electric and alternative fuel vehicles made her want to "gag."

The controversial transportation bill could raise $880 million a year for roads and mass transit.

Just across the river, the story is totally different: Maryland’s gas prices are going up July 1 by a few cents per gallon with a very different transportation funding package passed by that state's Legislature.

“Because of the shift in motor fuel tax policies in the statehouse, Maryland could emerge as one of the most expensive places in the country to purchase gasoline in the long run, consumers fear. Yet, motorists in Virginia will benefit from having one of the cheapest gasoline price-points in the nation,” John B. Townsend II, a spokesman for AAA Mid-Atlantic, said in a statement.

AAA also has projected that gas prices will continue to decline through the remainder of June.

The current average price of gas in Arlington is $3.69. In Alexandria and Fairfax, it’s $3.66.

Enter your ZIP code here to find the average (and cheapest) gas in your area.