(The Center Square) – Drivers in Virginia and Maryland are paying less at the pump heading into the Fourth of July holiday as a record 72.2 million Americans are expected to travel during the Independence Day travel period.
According to AAA, Virginia’s average price for a gallon of regular gasoline stood at $3.66 on Thursday, below the national average of $3.84. Maryland drivers were paying an average of $3.73 per gallon.
Virginia’s average was down about 9 cents from a week earlier and nearly 47 cents from a month ago. Maryland’s average was down about 6 cents from a week earlier and nearly 42 cents from a month ago.
AAA projects 61.4 million Americans will travel by car during the nine-day holiday travel period that began last Saturday and lasts through Sunday, nearly matching last year’s record. About 85% of holiday travelers are expected to drive to their destinations, making automobiles by far the most common form of travel.
GasBuddy also reported prices have continued to trend lower nationwide, with the national average falling nearly 7 cents over the past week to its lowest level since March.
“Average gasoline prices fell in 46 states over the last week, with diesel declining in 49, pushing the national average to its lowest level since mid-March,” Patrick De Haan, GasBuddy’s head of petroleum analysis, said in a statement.
De Haan said prices declined despite recent tensions involving Iran and the United States after fears of supply disruptions eased and oil markets stabilized. He said the national average could continue drifting lower in the near term, though geopolitical developments could quickly change that outlook.
Virginia’s annual motor fuels tax adjustment also took effect July 1 under a 2020 law that restructured the state’s fuel tax. Under state law, the gasoline tax is recalculated each July based on changes in the Consumer Price Index. This year’s rate increased from 31.7 cents to 32.6 cents per gallon, while the diesel tax increased from 32.7 cents to 33.6 cents per gallon.
Even with the annual tax adjustment, average gasoline prices in Virginia remain well below where they stood a month ago ahead of one of the busiest travel weekends of the year.