Federal and state taxes account for one-fifth, or approximately 15 percent, of the cost of a gallon of gasoline in West Virginia.

Federal and state taxes account for one-fifth, or approximately 15 percent, of the cost of a gallon of gasoline in West Virginia. We pay 50.60 cents in state and federal taxes on every gallon of gasoline we purchase.

In those border states where the gas tax is lower, West Virginia retailers are negatively impacted.  Customers will drive across the state line to purchase lower cost fuel. In West Virginia, all fuel taxes go to the Department of Highways to fund state road projects.  Through the fuel tax, West Virginia consumers provided nearly $397,748,645 million in 2010.

With West Virginia's small population, our annual consumption of gasoline is small in comparison to most states. West Virginia has approximately1,450 retail locations that sell gasoline. The average station sells approximately 48,517 gallons per month in comparison to the national average of 92,389 gallons per month.

Typically, when a station sells fewer gallons they charge more for it to allow them to cover the fixed costs (payroll, facilities and insurance) for their business. Stations with large volumes can often sell their products for less. Due to our limited distribution system, our state has less inventory than others. Much of our fuel comes from out of state, which increases the costs.

If you would like more information on state or federal gasoline taxes, please contact Jan Vineyard at (304) 343-5500.