Wednesday, February 23, 2011

Do you think gas prices are high? Nice graphic showing what other rich countries pay for gas...

This graphic shows the difference in gasoline prices among various "rich" countries. It is measured in dollars per litre. One litre is a little more than 1/4 of a gallon, hence there are a little less than 4 litres in a gallon.  Ignore the actual scale.  It is only important to look at the US cost of gasoline on the bar graph RELATIVE to the other countries.   Look at the bars. The gray-ish part of the bar represents the amount of the tax as a proportion of the price of gasoline. I am assuming the lighter blue bar represents the actual cost of gasoline.Notice the blue bars are mostly the same length, which means in most places the actual cost of gasoline is about the same.  The big difference in the total price is the tax that is levied.   Gas in the US is taxed at a much lower rate.  Gas is taxed at the state level and the Federal level in the US. The Federal portion is $18.4 cents and the State (Texas) is $.20 cents.  Some States it is less, most it is more.  So Texans pay $38.4 cents for every gallon pumped.  Are you surprised how much other countries pay in gas taxes?  It make the price very expensive in many European countries.  Why do you suppose that is so?  Good answers earn extra credit!!

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