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Gasoline tax

A Gasoline Tax (or gas tax or fuel tax) is a tax imposed on the sale of gasoline. Often (e.g. in the United States) the funds are dedicated or hypothicated to transportation, or even roads, so that the gas tax is considered by many a user fee. In other countries, the gas tax is considered a good source of general revenue and is not designated for roads, this is because the demand for the automobile is relatively inelastic, a one percent increase in the price of gas will reduce demand by much less than one percent.

In the United States, the federal gasoline tax is 18.4 cents a gallon, and the gasoline taxes in the various states range from 10 cents to 30 cents, averaging about 22 cents.

See also