Posted on 06/29/2022 9:49:45 AM PDT by SeekAndFind
What the heck are we going to do about the sky-high price of gasoline?
I know that everyone is feeling it right now… It’s one of the most pressing questions in the current economic environment. And no, a three-month holiday on the federal gasoline tax won’t solve the problem.
Here’s how the costs of gasoline (& diesel) break down:
As we can see above, taxes make up only 11% of the total price of a gallon of gasoline. And the federal gas tax is just 18.4 cents. For a 25-gallon tank, that amounts to a mere $4.60 savings. That’s enough to buy us a cup of coffee.
So no, that’s not going to solve the problem.
About 85% of the costs are associated with the cost of crude oil and the refining of that oil into gasoline.
Looking back, 2020 was a pivot year. Due to U.S. domestic policies to increase oil and gas production, it was the first year that the U.S. became a net exporter of petroleum since 1949. The positive effects of domestic production could be seen in low gasoline, diesel, and even natural gas prices (thus electricity) nationwide.
This is deeply unfortunate, and directly impacts the cost to fill up our cars and trucks. And it even increases the costs of goods and services, as delivery costs rise due to increased costs of diesel.
Further, rising prices of natural gas, propane, and heating oil dramatically increase the cost of electricity, and in some parts of the country, the cost to heat our homes in the winter.
Cause and effect.
Without a clear, consistent policy that incentivizes investment for domestic oil and gas production, we’ll continue to suffer with higher prices.
Less domestic production of oil and natural gas doesn’t lead to cleaner environmental policy. The reduced production of cleaner fuels, like natural gas, has only resulted in a spike in the use of the dirtiest form of carbon of them all – coal.
Such a farce. And when the tax gets added back in there will be protests for violating the constitutional right to lower tax gas. 😖
And shorts the Highway “Trust” Fund in the process.
Has the gov ever done this before due to high gas prices?
MY Mustang has a 16 gallon tank.
That would be $2.88, big deal.....................
Sweet, will bring it down to $5.80 here in Reno. Good times are here again
I suspect they want to highlight to the people that most of the gasoline price is tied to Big Oil, so yell at them for your high gas prices.
Don't say that too loud.
Next thing you know it will be $1.18.
ML/NJ
18 cents never fed a hungry child. In this country anyway...
Fine. Then it pops right back up in 3 months just in time for the mid-terms, putting Dems right back on the hot seat.
OK, but look at how much we’re gonna save on the 4th of July BBQ this year.
But it IS $.02 more than we “saved” last July 4th...
Gas was only 19 cents a gallon on sale in the old days (29 cents normally). And they gave you free dishes and savings stamps. And they put the gas in your car, cleaned your windows, checked your water, oil, transmission fluid, fan belts, hoses, and tires.
That’s why they were called service stations.
Smile 😊
A temporary tax holiday is, well, temporary. It just kicks the can down the road and requires payment later with more worthless dollars. I don’t think there should be a gas tax, ever. But the time to eliminate gas taxes is when the entire tax code is reformed and after gas prices have returned where the should be. Imagine Trump as President with MAGA congress. The economy is returned to normal, literally seven years from now. Gas prices are at $1.89 and then the gas tax is eliminated. That would be incredible.
A suspension of a tax is a good thing. Just as an 18 cent raise pushes inflation and impoverishes us all, so a decline will help us.
Make it permanent.
10 gals a buck eighty.
One better dare not go to McD’s with that.....
Duh. It took these people a week to realize this?!
Avg $27 over three months? Whoohoo!
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