NCPA - National Center for Policy Analysis


May 21, 2004

State lawmakers should give drivers relief at the pumps by temporarily repealing state gas taxes, says the American Legislative Exchange Council (ALEC).

The average price of a gallon of gasoline has skyrocketed in recent weeks. While much blame is placed on the oil and gasoline companies, government also contributes to the high cost of fuel through taxes and regulation, says ALEC.

  • The average state levies a 24.3 cent tax on each gallon of gasoline.
  • Federal and state taxes on each gallon of gasoline average 42.7 cents per gallon.
  • A gallon of gas for $ .97 cents a couple of years ago.

According to ALEC, regulation also takes a bite out of the consumer at the pumps. The Corporate Average Fuel Economy (CAF') standards, restrictions on refining capacity, and boutique fuel also make families pay more for fuel.

Whenever we tighten domestic regulatory requirements for fuel, says Sandy Liddy Bourne, ALEC's Director of Natural Resources Policy, we tighten energy markets and become hostage to foreign producers.

Source: "ALEC Urges Temporary Repeal of State Gas Taxes: States must take appropriate actions to lower fuel costs," American Legislative Exchange Council, May 20, 2004.


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