NCPA - National Center for Policy Analysis

Taxes Hike Gasoline Prices

September 11, 2000

In Europe and Japan, taxes are a larger component of gasoline prices than all other factors combined. In fact, French truckers went out on strike to obtain a 20 percent cut in taxes. But the country's socialist government would only agree to a 15 percent cut.

Speaking in New York last week, Saudi crown prince Abdullah advised Western countries to reconsider their high levels of gasoline taxation.

  • Fully $3.40 in taxes is built into Great Britain's $4.71 per gallon price -- while $2.82 in taxes adds to a total of $4.07 per gallon in France.
  • Italians pay the equivalent of $3.97 per gallon -- including $2.53 in taxes.
  • Germans pay $2.56 to the state every time they purchase a gallon at $3.91.
  • In Japan, a gallon costs the equivalent of $3.77 -- including $2.07 in taxes.

By contrast, taxes add an average of 39 cents to a $1.25 gallon of gas -- selling for a total of $1.64 in the U.S. And Canada's officials collect 78 cents out of every $1.90 gallon of gas sold.

Small wonder that as gasoline prices have jumped in recent months, protests have also broken out in Britain, Australia, New Zealand and a number of countries across Southeast Asia.

Source: Editorial, "The French Are on to Something," Investor's Business Daily, September 11, 2000.

 

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