For years I’ve read of the high cost Europeans pay for gasoline, and for years I’ve read the huge profits reported by US refiners.
Can someone determine the cost of the fuel as a raw commodity after refinement, before any type of taxes and transportations costs are applied, such that a comparison between the US and UK can be seen?
Many thanks.
This site itemizes the cost of a gallon of gasoline in the U.S. Refinery costs are about 60 cents. Crude oil cost is about a $1.50. See the link for the remaining costs.
The cost of crude oil and refining should be very similar for the U.S. and Europe. The difference is that European countries tax gasoline at a much higher rate than U.S. That accounts for virtually all the difference.
A quick check of Wikipedia gives the fuel tax for the UK at about 50 pence per liter - that works out to over $3.00 a gallon for taxes.
I did the math on the taxes for a previous thread.
US tax is about $0.38 / gallon
UK tax is $3.22 / gallon, and then a 17.5% VAT on the top.
Thanks for the answers thusfar. Is the 38 cents per gallon federal only or an all-encompassing estimate of federal, state, and other local?
The federal US tax on gasoline is 18.4 cents per gallon. State taxes vary by state and in some locations, local taxes also are added.
It’s an average of all taxes (though it maye be a trifle low). From this site:
It also notes that California adds 7.25% tax on top of all other costs (including federal & state excise taxes).