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.