# What is the raw cost of gasoline in the US and UK?

**URL:** <https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196>\
**Category:** Factual Questions\
**Created:** [August 30, 2005, 2:40am UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196 "2005-08-30T02:40:57Z")\
**Posts on this page:** 7\
**Page:** 1

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**Author:** ![danceswithcats](https://avatars.discourse-cdn.com/v4/letter/d/9e8a1a/32.png) [@danceswithcats](https://boards.straightdope.com/u/danceswithcats)\
**Post date:** [August 30, 2005, 2:40am UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196/1 "2005-08-30T02:40:57Z")

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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.

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**Author:** ![Shagnasty](https://avatars.discourse-cdn.com/v4/letter/s/9dc877/32.png) [@Shagnasty](https://boards.straightdope.com/u/Shagnasty)\
**Post date:** [August 30, 2005, 2:53am UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196/2 "2005-08-30T02:53:35Z")

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[This site itemizes the cost of a gallon of gasoline in the U.S.](http://www.energy.ca.gov/gasoline/margins/) 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.

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**Author:** ![RandomLetters](https://avatars.discourse-cdn.com/v4/letter/r/8edcca/32.png) [@RandomLetters](https://boards.straightdope.com/u/RandomLetters)\
**Post date:** [August 30, 2005, 7:04am UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196/3 "2005-08-30T07:04:03Z")

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A quick check of [Wikipedia](http://en.wikipedia.org/wiki/Fuel_tax) gives the fuel tax for the UK at about 50 pence per liter - that works out to over $3.00 a gallon for taxes.

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**Author:** ![SmackFu](https://avatars.discourse-cdn.com/v4/letter/s/53a042/32.png) [@SmackFu](https://boards.straightdope.com/u/SmackFu)\
**Post date:** [August 30, 2005, 3:15pm UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196/4 "2005-08-30T15:15:12Z")

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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.

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**Author:** ![danceswithcats](https://avatars.discourse-cdn.com/v4/letter/d/9e8a1a/32.png) [@danceswithcats](https://boards.straightdope.com/u/danceswithcats)\
**Post date:** [August 30, 2005, 5:07pm UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196/5 "2005-08-30T17:07:13Z")

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Thanks for the answers thusfar. Is the 38 cents per gallon federal only or an all-encompassing estimate of federal, state, and other local?

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**Author:** ![aahala](https://avatars.discourse-cdn.com/v4/letter/a/a88e4f/32.png) [@aahala](https://boards.straightdope.com/u/aahala)\
**Post date:** [August 30, 2005, 5:16pm UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196/6 "2005-08-30T17:16:12Z")

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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.

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**Author:** ![Xema](https://avatars.discourse-cdn.com/v4/letter/x/9de053/32.png) [@Xema](https://boards.straightdope.com/u/Xema)\
**Post date:** [August 30, 2005, 8:06pm UTC](https://boards.straightdope.com/t/what-is-the-raw-cost-of-gasoline-in-the-us-and-uk/319196/7 "2005-08-30T20:06:30Z")

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> [@danceswithcats](#):
>
> Is the 38 cents per gallon federal only or an all-encompassing estimate of federal, state, and other local?

It’s an average of all taxes (though it maye be a trifle low). From [this site](http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/primer_on_gasoline_prices/html/petbro.html):

> [@](#):
>
> Federal excise taxes are 18.4 cents per gallon and State excise taxes average about 21 cents per gallon. Also, eleven States levy additional State sales and other taxes, some of which are applied to the Federal and State excise taxes. Additional local county and city taxes can have a significant impact on the price of gasoline.

It also notes that California adds 7.25% tax on top of all other costs (including federal & state excise taxes).
