Dave's Energy

Wednesday, April 26, 2006

Gas Tax - The Unspoken Factor

What determines the price of gas at your local station? It isn’t just the price of a barrel of crude oil. By far the biggest factor in determining the price at the pump is the taxes—or subsidies—that a government levies on gas. In Venezuela, a state that subsidizes prices, a gallon of gas only sets you back 15 cents. In Germany, however, a state that taxes gas heavily, a gallon costs $5.53. So, how far you can go with $20 of gas depends on where you start your engine.

From Foreign Policy, March/April 2005.

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