[MeanWestTexan]

I understand fuel tax to be based on gallon, not price per gallon.

That is: $.75 per gallon, not 75% like a real sales tax.

If gas was .01 wholesale, it would cost $.76 at the pump.

[w1andsodidwe]

I understand fuel tax to be based on gallon, not price per gallon.

Are you sure about that? My understanding is that the california gas tax is based on dollars not gallons.

[BurbankKarl]

California taxes fuel 18 cents per gallon, and then adds state sales tax after that.

[thackney]

I understand fuel tax to be based on gallon, not price per gallon.

Some states have both.

US FUEL TAX RATES BY STATE