Re:Tesla Shock Means Global Gasoline Demand Has All but Peaked
by manicdee on Sunday November 27, 2016 @04:51AM
(#13048498)
Governments will increasingly switch from fuel excise to road use taxes, in most cases removing the excise to help bolster their domestic oil industry.
Re:Tesla Shock Means Global Gasoline Demand Has All but Peaked
by AnthonyMouse on Thursday December 01, 2016 @12:05AM
(#13077301)
Road use taxes are dumb. The only reason to have gas tax instead of funding roads the same way we fund the military is to discourage fossil fuel use.
And most governments, including most of the high population US states, don't have any domestic oil industry to speak of.
A car payment is maybe $200/month. Car insurance is maybe $100/month. 12,000 miles/year at 30MPG and $2/gallon is $67/month.
~$1.20 of the $2/gallon is taxes, refining, distribution and marketing.
So if the market price of crude oil falls by 75%, its contribution to a gallon of gas goes from $.80 to $.20. That's $20/month difference, or ~5% of the cost of operating a car.
And that's assuming crude prices actually fall by that much, and that governments don't raise the fuel tax to make up revenue and/or fight climate change. It's not hard to imagine adding $.49/gallon to the gas tax.