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EasyAutoSales Blog


December 2008 – Gas Tax per Gallon


A lot of people have been using the above graphic to show the current state of gas taxes and the fact that states are contemplating a tax hike in order to increase governmental revenues in the current economic environment. Though it’s been shown time and time again that people will use less of what they are taxed upon (and in turn, revenues will actually go down, not up), local, state and federal agencies continue to tax the average citizen instead of optimizing their budgets like any private organization. Looking at the above should be a reminder as to whom makes the most amount of money from gasoline. It’s not Exxon or Shell. It’s the state and federal government. Whereas the profit margin (on average) sits between 3-5%, the government makes almost 22% (in the lowest case) of the price of a gallon of gas (and mind you, they have done nothing like exploration, refining or transport to take that oil from the ground and turned it into something that will power your car).

I hope you will all remember this next time Congress starts to complain about windfall profit taxes and the greed of oil executives.