Effective July 1, 2018, Virginia Motor Vehicle Fuels Sales Tax (Wholesale Sales Tax) was converted to a cents per gallon tax. Prior to July 1, the tax rate was applied to the sales price charged to the retail dealer and was 2.1% of that total. Effective July 1, the tax rate will be applied to the number of gallons sold and delivered to the retail dealer, 7.6 cents for gasoline and 7.7 cents for diesel.
In less than three weeks, Virginia moves away from a flat tax of 17.5cts/gal on gasoline and diesel to levies that reflect wholesale prices of the fuels over the previous six months. According to the Virginia Petroleum, Convenience and Grocery Association (VPCGA), fuel taxes in effect from July 1 through the end of the year will be 11.1cts/gal for gasoline and 20.2cts/gal for diesel.