Why?
Because prices are set by supply and demand, not costs. Cutting taxes in that environment (when prices are regulating demand in line with tightened supply) would only increase the profits in the gasoline supply chain, not reduce prices. I'm all for lower taxes, but let's not advocate them under false presumptions. That Georgia joined the chorus against 'gouging' in gasoline prices after the gas pipelines to the southeast were shut down in the wake of Katrina tells me Purdue doesn't get it, or is happy to play off the general ignorance of the public. Neither are particularly attractive.
The tax decrease resulted in less money payed at the pump, how did that increase the profits in the gasoline supply chain? Because the cost on the pump was marginally lower than the cost at the pump in New York, you think individuals immediately bought another car to fill up?
His tax cutting measure defused the criticism of the dumb masses that "the Government" didn't "help us" and showed that a Republican Governor was better than a Democrat.
So costs do not factor into prices?
Cutting taxes in that environment (when prices are regulating demand in line with tightened supply) would only increase the profits in the gasoline supply chain, not reduce prices.
But aren't you forgetting that Perdue's tax cuts only lowered the price consumers paid for gasoline in Georgia and thus had little impact on overall supply, demand or anything else?