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!!
View My Stats
I noticed how many of the top countries on this list are part of the European Union, and also more socialized. It's possible therefore that in addition to their local taxes they pay, they also pay a higher federal tax to support their welfare programs, and then a tax by the EU itself. Other possibility, although most likely with a smaller impact is the domestic production of Oil in the US is higher than most of those countries.
ReplyDeletePerhaps this tax is thought of as a deterrent of sorts? While Europe does have its fair share of interstate-class highway systems, it has to work with a lot of older and smaller road infrastructure in urban areas. If auto demand were significantly higher, congestion, and perhaps pollution would become a major issue.
ReplyDelete