West Virginia has set the 2018 average wholesale prices of motor fuels, which will be used to set tax rates during 2018. Specifically, the wholesale average price is used to determine sales and use taxes on motor fuel. In West Virginia, the sales tax on motor fuels, also called the motor fuel excise tax, is composed of:
- a flat rate, plus
- a variable component of 5% of the average wholesale price of each fuel.
Average Wholesale Prices for Fuels
Statewide average wholesale prices have been set for both conventional and “alternative” motor fuels.
Conventional Motor Fuels
The average wholesale price on conventional motor fuels is $3.040 per gallon. As a result, the variable fuel tax rate remains at 15.2 cents per gallon. The combined total tax is 35.7 cents per gallon. Conventional motor fuels include gasoline, diesel, and kerosene.
“Alternative” Motor Fuels
For liquefied petroleum gas, such as propane, the average wholesale price is $1.008 per gallon. Thus, the variable fuel tax rate is 5 cents per gallon. The combined total rate is 20 cents per gallon.
For compressed natural gas, the average wholesale price is $4.982 per 1,000 cubic feet. As a result, the variable fuel tax rate is:
- 24.9 cents per 1,000 cubic feet; or
- 3.2 cents per gasoline gallon equivalent.
The combined total rate is 23.7 cents per gallon.
Finally, the average wholesale price for liquefied natural gas is 40.6 cents per gallon. The variable fuel tax rate is 2 cents per gasoline gallon equivalent. Thus, the combined total rate is 15.2 cents per gallon.
Administrative Notice 2017-21, West Virginia State Tax Department, November 21, 2017, ¶401-290