With Memorial Day weekend approaching, chances are that many Tri-Staters will hit the highways for a road trip.
Perhaps, because gas prices are hovering near $4 a gallon for unleaded, that trip will be shorter this year than in years past. But it still may be just long enough to get to an area where gas prices are a lot less expensive than they are in the Tri-State.
"Why," Tri-Staters will undoubtedly ask when they see the sign for gas costing far less per gallon than they paid before leaving town.
Well, there are a number possible reasons.
The first definite distinction is state gas taxes. Every motorist pays roughly 19 cents in federal taxes per gallon of gasoline, and then a state tax.
In West Virginia, that state tax is about 32 cents right now, though it changes at least on a yearly basis. West Virginia drivers pay a flat rate of 20.5 cents per gallon, plus a variable rate, which this year is 11.7 cents, said Kimberly Osborne, director of communications for the state Tax Department.
"That rate is set based on the average wholesale price of all fuel --- gas, propane and diesel," she said.
The average rate is determined by the wholesale prices between July and October of any given year, and goes into effect in January of the following year. So next year's variable rate will be determined between July 1 and Oct. 31 of this year.
Those monies go toward the state's road fund and are expected to generate $380 million for the road fund in 2008-09, Osborne said. They cover about 60 percent of the funding for road repairs and construction, with other supplements coming from motor vehicle sales tax and Department of Motor Vehicle fees.
In fact, high gasoline prices may be cutting into West Virginia's pool of money for highway repair and construction.
Last month, tax proceeds totaled $30.5 million, which is $2.35 million less than projected and a drop of about 4 percent over collections in April 2007, Tax Commissioner Virgil Helton told the Council of Finance and Administration during legislative interims Monday.
A year ago in April, the gas tax generated $31.87 million.
"The price of gasoline in the last two or three months has caused consumers to change their driving habits to the extent they can," he said. "You're seeing less gas consumed."
Meanwhile, other states have other funding sources for their road funds.
They may have lower state gas taxes, but often taxpayers make up for that in other ways, Osborne said. Some states' road funds are supplemented with local funds, which often means a hike in property taxes, she said.
According to AAA, Ohio's state taxes are 28 cents per gallon, and Kentucky's 18.5 cents per gallon.
But gas prices vary, even aside from state taxes.
Economist Ron Planting of the American Petroleum Institute offers some possible reasons why.
"It's not necessarily by state or by area," he said. "If you're close to a major refining center, that would be something that would reduce transportation costs (and lower prices). If you're near a pipeline, that might be less expensive transportation."
The cost of land affects gas prices for some areas.
"If you pay rent for your station, rent could be different depending on where you are," Planting said. "Another thing that could affect it is the volume. If you're in a lower population area or more spread out, it might cost more because of the lower volume."
He also notices pattern changes in the market in certain areas.
"There can also be short term supply and demand issues, if there was, say, a problem at a refinery or at a pipeline into a region."
The Associated Press contributed to this report.
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