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American Gas Prices, Not So Bad!

Arch Enemy

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I know this study has been done countless times.. but I've yet to see an updated version of this type. The problem is not with the price for the Gas, but with the Taxes on the gas!

As we all know, Gas Prices have risen to about $2.48 per Gallon (Nation Average http://money.cnn.com/2005/08/15/news/economy/gas_prices/ [Dated 8/15/05])

If you go here (http://www.taxadmin.org/fta/rate/motor_fl.html) You can find this years tax on Gas Prices per Gallon. Now, let's do some simple math.

First we start off with the Average Amount of Gasoline (Per Gallon):

$2.48 (Price per Gallon on nation wide average)
MINUS
$0.26 (rounded amount of Tax stated for North Carolina)
EQUALS
$2.22 Per Gallon W/O Tax

Now let us compare these prices with other liquids, sold in gallon form.

(http://www.awwa.org/Advocacy/learn/info/PricePerGallon.cfm)
According to American Water Works Association:

Cost per gallon:
Chanel No. 5 Parfum: $45, 056
Revlon Nail Enamel: $983.04
Visine Advanced Eye Drops: $741.12
Vicks 44D Cough Syrup: $96.67
Coppertone SPF 45 sun-block lotion: $90.11
Pepto-Bismol: $58.52
Evian bottled water: $21.19
Mocha at Peaberry coffee (tax included): $22.28
Corona beer: $12.89
Snapple: $10.32
Tide liquid detergent: $8.39
Coca-Cola: $2.64
Tap water, Denver Water - .00186 cent for 11,000 gallons or less per month, including monthly service charge

even WITH the added tax amount, the nation wide average for gas falls somewhere between tap water and Coca-Cola.

So in reality, it's not so bad.
 

surftide

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well of course it's not that bad if you look at it as only one gallon, but then look at these cars that take 32 gallons at a time, i mean when you got to fill up, you gata' fill up! and that comes out to about 80 buck's and your saying thats not a big deal, ha!
 
T

The Real McCoy

My car runs on Pepto-Bismol and these high prices have really been putting a dent in my wallet at the fill-up station these days.
 

Iriemon

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Arch Enemy said:
I know this study has been done countless times.. but I've yet to see an updated version of this type. The problem is not with the price for the Gas, but with the Taxes on the gas!

As we all know, Gas Prices have risen to about $2.48 per Gallon (Nation Average http://money.cnn.com/2005/08/15/news/economy/gas_prices/ [Dated 8/15/05])

If you go here (http://www.taxadmin.org/fta/rate/motor_fl.html) You can find this years tax on Gas Prices per Gallon. Now, let's do some simple math.

First we start off with the Average Amount of Gasoline (Per Gallon):

$2.48 (Price per Gallon on nation wide average)
MINUS
$0.26 (rounded amount of Tax stated for North Carolina)
EQUALS
$2.22 Per Gallon W/O Tax

Now let us compare these prices with other liquids, sold in gallon form.

(http://www.awwa.org/Advocacy/learn/info/PricePerGallon.cfm)
According to American Water Works Association:

Cost per gallon:
Chanel No. 5 Parfum: $45, 056
Revlon Nail Enamel: $983.04
Visine Advanced Eye Drops: $741.12
Vicks 44D Cough Syrup: $96.67
Coppertone SPF 45 sun-block lotion: $90.11
Pepto-Bismol: $58.52
Evian bottled water: $21.19
Mocha at Peaberry coffee (tax included): $22.28
Corona beer: $12.89
Snapple: $10.32
Tide liquid detergent: $8.39
Coca-Cola: $2.64
Tap water, Denver Water - .00186 cent for 11,000 gallons or less per month, including monthly service charge

even WITH the added tax amount, the nation wide average for gas falls somewhere between tap water and Coca-Cola.

So in reality, it's not so bad.
I took your advice and put 15 gallons of Denver tap water in my VW Passat. This will probably be the last time I take your advice.
 
F

FireUltra 98

Oil and gasoline prices are high due to the globally determined commodity value of crude oil, the disruptions in exploration and producing along the Gulf Coast and general demand by the market. As a result, other fuels (also traded globally) like gasoline, jet fuel, diesel, propane, etc are also high. But several people seem to ignore the other side of the high price environment cycle . . .the low ends of the cycle. Just as prices go up due to the aforementioned, they also fall for the opposite reasons. However, one aspect of the price we pay at the pump doesn't go down, good times or bad, high prices or low prices . . the tax component. Taxes eat up more than oil companies make on each gallon sold (as noted above). By default, and to the benefit of all of us, the government is a 40% partner with oil companies, in fact all companies as a result of the taxes paid on sales - even during the the low price cycles. When gasoline prices go down due to market forces, the tax value stays the exact same and can even go up. The oil market is cyclical, prone to market busts and booms associated with economic cycles, just like virtually every commodity and finished good seller in the US. Taxes from local and federal agencies however, increase steadily with little regard to the US economy.

Here's some graphs I picked up from the Tax Foundation.

State and Federal Taxes on Gasoline Production and Imports Exceed Oil Industry Profits in Most Years
 

Iriemon

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FireUltra 98 said:
.... Taxes eat up more than oil companies make on each gallon sold (as noted above). By default, and to the benefit of all of us, the government is a 40% partner with oil companies, in fact all companies as a result of the taxes paid on sales - even during the the low price cycles. ...
What is the federal tax on gas sales?
 
F

FireUltra 98

Federal tax on unleaded gasoline is 18-20 cents per gallon (the graph below only goes through 2004).



Total of federal, state and local taxes per gallon of gasoline in just over 49 cents, so the Federal portion represents just under half of the tax value. Federal tax rates are constant accross the nation; however, state and local taxes can vary from city to city (below graph goes through Aug 2005).

 

-Demosthenes-

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Arch Enemy said:
I know this study has been done countless times.. but I've yet to see an updated version of this type. The problem is not with the price for the Gas, but with the Taxes on the gas!

As we all know, Gas Prices have risen to about $2.48 per Gallon (Nation Average http://money.cnn.com/2005/08/15/news/economy/gas_prices/ [Dated 8/15/05])

If you go here (http://www.taxadmin.org/fta/rate/motor_fl.html) You can find this years tax on Gas Prices per Gallon. Now, let's do some simple math.

First we start off with the Average Amount of Gasoline (Per Gallon):

$2.48 (Price per Gallon on nation wide average)
MINUS
$0.26 (rounded amount of Tax stated for North Carolina)
EQUALS
$2.22 Per Gallon W/O Tax

Now let us compare these prices with other liquids, sold in gallon form.

(http://www.awwa.org/Advocacy/learn/info/PricePerGallon.cfm)
According to American Water Works Association:

Cost per gallon:
Chanel No. 5 Parfum: $45, 056
Revlon Nail Enamel: $983.04
Visine Advanced Eye Drops: $741.12
Vicks 44D Cough Syrup: $96.67
Coppertone SPF 45 sun-block lotion: $90.11
Pepto-Bismol: $58.52
Evian bottled water: $21.19
Mocha at Peaberry coffee (tax included): $22.28
Corona beer: $12.89
Snapple: $10.32
Tide liquid detergent: $8.39
Coca-Cola: $2.64
Tap water, Denver Water - .00186 cent for 11,000 gallons or less per month, including monthly service charge

even WITH the added tax amount, the nation wide average for gas falls somewhere between tap water and Coca-Cola.

So in reality, it's not so bad.
How does a drop Visine Advanced Eye Drops compare to 26 gallons of gas?
 
T

The Real McCoy

I just learned from that map that my state (New York) has the highest gas taxes in the nation, I always thought it was California. Awesome. I also live in the county with both the highest sales tax in the country and the 3rd highest rate of Meth lab busts in the nation. I have many things to be proud of.
 
F

FireUltra 98

The Real McCoy said:
I just learned from that map that my state (New York) has the highest gas taxes in the nation, I always thought it was California. Awesome. I also live in the county with both the highest sales tax in the country and the 3rd highest rate of Meth lab busts in the nation. I have many things to be proud of.

CONGRATS!:confused:


:mrgreen:
 

stsburns

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I can say it like this. Oil companies are getting $20 a week from me. So they can set the profit margins to whatever they want, I'm still going to pay $20 gas each week! :mrgreen:
 
T

The Real McCoy

stsburns said:
I can say it like this. Oil companies are getting $20 a week from me. So they can set the profit margins to whatever they want, I'm still going to pay $20 gas each week! :mrgreen:
Out of that $20, the government is raking in a lot more than the oil companies are.
 

stsburns

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The Real McCoy said:
Out of that $20, the government is raking in a lot more than the oil companies are.
Yea, I think the state is getting $.75 of every gallon of gas I get? Man were overtaxed in North Carolina! :mrgreen:
 

Lantzolot

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You also need to think about how much money the federal government spends subsidizing the prices. They use tax money to make the prices lower.

Herophant said:
Hehe, you guys should check out the gas price in norway.. 6.66 $ a gallon. (omg the nummber of the beast! The end i surly upon us!) 67% of that is taxes.....


http://www.gasandoil.com/goc/news/nte52112.htm
But, that would probably mean that you dont have to pay as much taxes in other things.
 
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