Experts Say MD Gas Tax Changes Could Send Drivers to VA to Fill Up

Changes to gas taxes in Maryland and the District could push drivers to Virginia to fill their tanks, experts from AAA Mid-Atlantic and the Washington, Maryland, Delaware Service Station and Automotive Repair Association (WMDA) say.

AAA Mid-Atlantic spokesperson John Townsend told the Washington Examiner that while Virginia continues to offer lower-priced gas, “Maryland will become one of the most expensive places in the country to buy gasoline and will likely surpass DC with some of the highest gas prices around.”

As reported by Patch in March, the Maryland legislature approved a bill that will increase the state’s gas tax to as much as $0.446 per gallon by 2016.

On July 1, the gas tax will be raised by four cents from $0.235 to $0.275.

On the same day, Virginia’s $0.175 per gallon tax is slated to be replaced by a smaller wholesale gas tax, which could drop per gallon prices in Virginia by six cents per gallon.

The average price-per-gallon in Maryland was $3.51 on Thursday, while in neighboring Virginia, the average price was $3.39—a difference of 12 cents.

If the new tax were in effect last week, the gap would have been 16 cents. When the increased Maryland gas tax is fully realized on July 1, 2016, the per gallon disparity could be as high as 32 cents per gallon.

“For the [gas station] members along the border, it’s going to be a catfight just to stay in business,” Kirk McCauley, the WMDA’s head of government relations, told WAMU. “It will put some of them out of business.”