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Virginia Suspends Fuel Tax

You are currently viewing Virginia Suspends Fuel Tax
Virginia passed legislation that will remove the fuel tax
  • Post category:News

Virginia Governor Glenn Youngkin wants to do something about the rising gas prices in the state. His plan is to send legislation to the General Assembly to suspend Virginia’s fuel tax. It is a bold move that should please local residents. However, the fuel holiday won’t last forever. The plan, as written, means the suspension of the Virginia fuel tax for 3 months.

During the months of May, June, and July, Virginia residents will see slightly lower fuel prices due to the suspension of the fuel taxes. Currently, the state tax stands at 26.2 cents per gallon and 27 cents per gallon for diesel. This means if you’re fueling up a 15-gallon tank, you’ll save just under four dollars to fill up the tank. If you’re filling up once a week for the next three months, that’s a savings of $51.09.

Is this for Virginia State and Federal Fuel tax?

The federal tax on fuel is still active. Congress played around with the idea of suspending the federal fuel tax but eventually decided that the numbers didn’t work. The average person wouldn’t see a significant saving, but there would be a substantial loss in tax revenue. Rather than putting the government in a bigger hole, they tabled the bill and left it to the states to decide if they wanted to suspend their own fuel tax.

To mixed reviews, Virginia and other states have made the move to temporarily remove the fuel tax. Some say that the move is to please voters in an attempt to sway polls, while others think it’s a viable solution to combat rising gas prices.

Whatever the decision, Virginians will be able to voice their opinions well after they reinstate the fuel tax. Voters are back in the voting booths this September, and only time will tell if they look at this fuel tax as a good thing. There have been no reports of an estimated loss of tax revenue by local legislators.

In the meantime, many Virginia residents will welcome the savings. Biden just enacted a law to ship 100 million barrels of fuel from the US reserves to help increase the supply and lower fuel prices. This has already helped lower gas prices, and with the added suspension of the fuel taxes, Virginians should see lower fuel prices very soon.

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