- Associated Press - Monday, December 1, 2014

CHARLESTON, W.Va. (AP) - Motorists will get a break on gasoline prices in West Virginia, thanks to an annual tax recalculation.

Beginning Jan. 1, the state’s variable tax for conventional motor fuels will drop about a penny per gallon from 15.2 cents per gallon to 14.1 cents per gallon.

The decrease will save motorists more than $15 million compared to what they are paying this year, Deputy Revenue Secretary Mark Muchow told the Charleston Daily Mail (https://bit.ly/1tDy7sY ).

“That means consumers will have additional funds for other needs,” he said.

A motorist who drives 20,000 miles a year in a vehicle that gets 25 miles per gallon will see an annual savings of nearly $9, Muchow said.

“That’s good news to consumers, but a bit of a reduction to the state’s road fund,” he said.

State officials estimate the road fund will collect $431 million from the motor fuel tax this fiscal year. Total collections are estimated at $701 million.

The state Tax Department is required by law to recalculate the state average wholesale price of motor fuels every year. Conventional motor fuels include gasoline, kerosene and diesel. The department determined that the new price was $2.819 per gallon, down from $3.049.

The variable tax is 5 percent of the state average wholesale price, and is one component of the gas tax that motorists pay. The other components are a flat state rate of 20.5 cents per gallon and a flat federal tax.

The U.S. Energy Department has said it expects the average retail price for a gallon of regular unleaded gasoline to be $2.94 in 2015 because of declining oil prices

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Information from: Charleston Daily Mail, https://www.charlestondailymail.com


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