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Thursday, 08/28/2008
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How much do we pay in gasoline taxes? Print E-mail

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 49.40 cents in state and federal taxes on every gallon of gasoline we purchase.

According to the Energy Information Administration (EIA), the national average for state gasoline taxes is 21.44 cents. The lowest state gasoline tax in the nation is Georgia at 7.5 cents per gallon, while the highest is Washington at 36 center per gallon. West Virginia charges 32.2 cents per gallon - nearly 11 cents over the national average and the third highest state gasoline tax in the nation.

West Virginia Tax on Each Gallon of Gasoline
West Virginia Tax 31.50 cents
Federal Tax 18.40 cents
Total 49.9 cents


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 $321 million in 2005.

urrounding States Tax on Each Gallon of Gasoline
Kentucky 21 cents
Virginia 19.2 cents
Maryland
23.5 cents
Ohio
28 cents
Pennsylvania
31.2 cents

 

With West Virginia's small population, our annual consumption of gasoline is small in comparison to most states. West Virginia has approximately 1,300 retail locations that sell gasoline. The average station sells approximately 54,500 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 cost.

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

(Each gallon of gasoline taxes effective 1/1/2008)

 
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West Virginia Oil Marketers and Grocers Association - 2506 Kanawha Blvd. East - Charleston, West Virginia 25311