BY” RON MILLER
Principal, Reliant Energy Solutions LLC===REPORT RAN==5/3/23
Ron Miller is an energy industry expert creating value by analyzing assets, markets, and power usage to identify, monetize, and implement profitable energy and emission reduction projects. He is...
• May 13, 2020
An electric vehicle movement is accelerating around the world, but what about the fuel taxes we pay for road repair? How much do these state and federal excise taxes generate, and more importantly in the EV age, what revenue source will maintain our highways and bridges infrastructure?
Individual states in the US have varying fuel taxing structures, some based on a percentage of the fuel price, along with a set surcharge in cents per gallon. The federal fuel tax is a set add-on to the price of fuel, 18.4 cents per gallon for gasoline/gasohol, and 24.4 cents for special fuel (primarily diesel).
To maintain our highway infrastructure, taxes on highway fuel, tires, heavy vehicle use tax, truck/trailer sales taxes all go into the Highway Trust Fund, managed by the US Treasury Department, after collection by the Internal Revenue Service. Funds are allocated to each of the states for their share of infrastructure maintenance.
In general, Americans pay approximately this broad average for regular gasoline, broken down by its cost components as shown in Figure 1.
Figure 1: Cost Components Of Regular Gasoline Gallon (Feb 2019, Retail Price $2.31)
TAXES: 20%
DISTRIBUTION AND MARKETING-14%
REFINING 7%
CRUDE OIL 59%
Referenced by the American Petroleum Institute, we see the state and federal taxes arrayed by state for both regular gasoline and diesel, are shown in Graphs 1 and 2.
Graph 1: Regular Gasoline State & Federal Taxes By State
Graph 2: Diesel State & Federal Taxes By State
However, all states do not tax at the same rate are shown in Graphs 3 and 4 for regular gasoline and diesel, respectively, priced on 18 April 2020. The graphs reveal each state’s fuel tax as a percentage of the fuel price as shown on the right vertical axis; the left vertical axis is the price of fuel in dollars per gallon.
Graph 3: Regular Gasoline Price Vs. State Fuel Tax Rate %
Although Hawaii and California lead the nation in the cost regular gasoline at or near $3 per gallon, other states such as Indiana and Illinois extract more than 30% of the gasoline cost in state taxes. For diesel, the story is somewhat different with California and Pennsylvania leading as the highest percentage tax rate at rates above 35%.
thebigp wrote:
BY” RON MILLER
Principal, Reliant Energy Solutions LLC===REPORT RAN==5/3/23
Ron Miller is an energy industry expert creating value by analyzing assets, markets, and power usage to identify, monetize, and implement profitable energy and emission reduction projects. He is...
• May 13, 2020
An electric vehicle movement is accelerating around the world, but what about the fuel taxes we pay for road repair? How much do these state and federal excise taxes generate, and more importantly in the EV age, what revenue source will maintain our highways and bridges infrastructure?
Individual states in the US have varying fuel taxing structures, some based on a percentage of the fuel price, along with a set surcharge in cents per gallon. The federal fuel tax is a set add-on to the price of fuel, 18.4 cents per gallon for gasoline/gasohol, and 24.4 cents for special fuel (primarily diesel).
To maintain our highway infrastructure, taxes on highway fuel, tires, heavy vehicle use tax, truck/trailer sales taxes all go into the Highway Trust Fund, managed by the US Treasury Department, after collection by the Internal Revenue Service. Funds are allocated to each of the states for their share of infrastructure maintenance.
In general, Americans pay approximately this broad average for regular gasoline, broken down by its cost components as shown in Figure 1.
Figure 1: Cost Components Of Regular Gasoline Gallon (Feb 2019, Retail Price $2.31)
TAXES: 20%
DISTRIBUTION AND MARKETING-14%
REFINING 7%
CRUDE OIL 59%
Referenced by the American Petroleum Institute, we see the state and federal taxes arrayed by state for both regular gasoline and diesel, are shown in Graphs 1 and 2.
Graph 1: Regular Gasoline State & Federal Taxes By State
Graph 2: Diesel State & Federal Taxes By State
However, all states do not tax at the same rate are shown in Graphs 3 and 4 for regular gasoline and diesel, respectively, priced on 18 April 2020. The graphs reveal each state’s fuel tax as a percentage of the fuel price as shown on the right vertical axis; the left vertical axis is the price of fuel in dollars per gallon.
Graph 3: Regular Gasoline Price Vs. State Fuel Tax Rate %
Although Hawaii and California lead the nation in the cost regular gasoline at or near $3 per gallon, other states such as Indiana and Illinois extract more than 30% of the gasoline cost in state taxes. For diesel, the story is somewhat different with California and Pennsylvania leading as the highest percentage tax rate at rates above 35%.
BY” RON MILLER br Principal, Reliant Energy Solut... (
show quote)
Well, electric charging stations, can charge a tax, local, state and federal. Which means the power companies (i.e. utilities) already know how to do that.
The odometer will be hooked up to the internet and you will be taxed mileage
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