RICHMOND, Va. — Virginia Republicans are calling on Democratic leadership and Gov. Abigail Spanberger to suspend the state's gas tax as prices at the pump soar due to the war with Iran.
Gas prices in Virginia are an average of $1 more expensive than a month ago, according to AAA. The average for a gallon of regular unleaded in the state was $3.88 on Friday, while it was $2.82 a month ago.
The increase is even more for diesel, with the average cost Friday in Virginia sitting at $5.48. It was $3.68 a month ago.
The increases are part of a nationwide trend as the U.S. and Israel's war with Iran has led to impact vessel traffic in the Strait of Hormuz, where 20% of the world's oil supply travels through.
Adrian Watkins says gas prices hovering around $4 a gallon are hurting him.
"Gas prices are too high. Look at the price," Watkins said.
On Friday, Virginia state Republicans in the House and Senate called for a 90-day pause of the state gas tax, which is 32 cents for a gallon of regular and 33 cents for diesel.
"This 90-day moratorium on the state gas tax is a real way that we can deliver for Virginia families," Sen. Glen Sturtevant (R-Chesterfield) said.
Republicans estimate pausing the gas tax would cost Virginia about $125 million in tax revenue each month. They argue the state can absorb the cost without impacting the road projects the tax primarily funds.
"Not only have we been running a surplus, but we have billions in reserves, whether that be the rainy day fund or the other reserves that we have that we could tap into," House Minority Leader Del. Terry Kilgore (R-Scott) said. "With our proposal, we would lose no funding for roads, construction, or maintenance, and we can work it into the budget or pass something during the upcoming special session."
But because Republicans are in the minority in all levels of state government, they would need support from Democratic lawmakers and Governor Abigail Spanberger.
"We want to work with our Democrat colleagues in a bipartisan way to make this happen," said Kilgore.
But Democratic leadership rejected the idea in statements and said President Donald Trump is to blame for the prices because of the war.
"The Virginians I talk to are asking us to stand up to Trump, his power grabs and to end the constant damage to our state and economy caused by his lawless behavior instead of trying to help pay for his bad decisions," said Senate Majority Leader Sen. Scott Surovell (D-Fairfax).
"Even former Republican Governor Glenn Youngkin has acknowledged that suspending the gas tax does not guarantee lower prices at the pump – because those savings aren’t always passed on to consumers they can be pocketed by the businesses, " added House Speaker Don Scott (D-Portsmouth).
"Right now, Virginians are feeling the brunt of the President’s actions at the pump and grocery store," Spanberger said in a statement. "As gas and diesel prices soar, I am working to create long-term solutions to address rising costs in energy, housing, and healthcare."
When asked if the war was worth the increase in gas prices, Republicans defended the conflict.
"I think it's worth stopping Iran from getting nuclear capability, yes," Kilgore said. "Do I think it's worth taking them off the map as a terrorist, sponsor of terrorism, yes, but we know this is going to be very temporary."
But Old Dominion University Economics Professor Bob McNab said gas tax holidays in other states have not led to consumers getting the complete benefit.
"Unfortunately, what we've seen in the past is that gas tax holidays don't really impact consumers as much as politicians would like," McNab said. "If the gas tax is suspended, what we find is that at every stage along the way, a little bit of that gas tax holiday is absorbed."
Republicans say that can be addressed through the language they use to pause the tax.
"To ensure that the savings of eliminating this gas tax are mandatorily required to be passed on to the consumer. And I think that that's something that we could make very clear," Sturtevant said.
Still, McNab said the benefit could be short-lived.
"One of the things we've seen in previous gas tax holidays is that there are some savings that are passed on to the pump," said McNab. "Now consumer demand increases for gasoline because prices are lower, and it returns prices to their previous levels. So the gas tax reduction gets absorbed by market forces."
McNab said a more effective way to provide relief is rebate checks.
"If you earn $100,000-$200,000 a year, yes, you're irritated that gas is now more expensive than it has been in a while, but you're able to fund transportation without really impacting your household budget or your livelihood," said McNab. "However, if you earn less than $50,000 a year, the increase in prices of the pump really impacts your ability to go to work, really impacts your ability to take kids to sports or schools. So, rather than giving a benefit to everybody, you can take state revenue and target those of the least means to provide some relief in a much more efficient way."
Lawmakers are set to return to Richmond in April to finish work on legislation passed in the last session and to finish work on the state budget.
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