Report: Virginia gas costs rose $1.8B since war

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1–2 minutes
Gas pumps

Summary

A congressional report said Virginia drivers have paid $1.8 billion more for gas since the U.S.-Iran war began in late February.

Why this matters

The story shows how overseas conflict and shipping disruptions can affect fuel prices and household costs in Virginia. It also outlines policy responses under debate as voters weigh affordability ahead of congressional elections.

Virginia households have paid an average of $573 more for gasoline since the U.S.-Iran war began in late February, according to a recent congressional report. The report said Virginians have paid $1.8 billion more for gas over that period.

The war involving the U.S., Israel, and Iran disrupted energy markets and oil shipments, particularly through the Strait of Hormuz, a major route for global oil exports. The disruption contributed to higher oil prices and increased transportation and consumer costs, the article said.

“Because of the president’s war of choice, Virginians are facing higher gas, utility, and grocery costs,” U.S. Sens. Tim Kaine and Mark Warner said in a July 14 statement. “Instead of ending this war and finally easing the burden that he has placed on American families, Trump is calling off the ceasefire, trading airstrikes with Iran, and blockading the Strait of Hormuz.”

According to AAA, the average U.S. price for regular gasoline was above $4 a gallon as of July 21, about 13 cents higher than a week earlier and significantly higher than at the same time last year.

In a statement to The Associated Press, the White House said it expected prices to decline if shipping through the Strait of Hormuz normalized. The AP reported that energy analysts cautioned that supply chains could still take months to recover fully, even if fighting subsided.

Democrats introduced the Gas Prices Relief Act in March, and Republicans introduced the Gas Tax Suspension Act in May, but neither passed.

In Virginia, the gasoline excise tax rose by 1 cent over the past year to 32.6 cents under the state’s indexing formula, according to the Virginia Department of Motor Vehicles.

Virginia Republicans also proposed a gas tax holiday, but it was not included in the biennial budget. Democratic leaders, who control both chambers of the General Assembly, did not explicitly say why it was excluded, instead emphasizing other affordability priorities.

VCU’s State of Democracy study by the L. Douglas Wilder School of Government and Public Affairs found that voters viewed rising living costs, including gas prices, as a key issue ahead of the midterm elections, when Virginians will elect new members of Congress.

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