Gas Prices

I remember when I was a kid just before the Gulf War, gas prices were at about 95 cents per gallon. During the war, we all thought they were outrageous as we watched them climb well past the dollar mark. These days, we are complaining as they reach three dollars per gallon, but complaining I shall no longer do.

While visiting the United Kingdom last March, I happened to glance at the adverts for gasoline (petrol), and saw shockingly low prices of 95p per liter! I haven't seen a gasoline sign with 0.95 on it since I was a kid! Once I did the conversion though, I realized my mistake. 95 Pence Per Liter is equal to about $6.29 USD per gallon. Next time you complain about gasoline prices, think of the poor people in the U.K.

Interesting to note, that the gasoline prices in the U.S. is about 23% tax. Incase you are wondering, 47% is crude oil, 18% refining costs and profit, and the last 12% is distribution and marketing costs.

In the U.K. on the other hand, an average of 75% of their petrol costs are government taxes. Here, 9% is crude oil, 3% is refining, and 8% is transportation costs.

I tried to find out what these taxes go to pay for, but I was unable to find any specific details. Although, from now on, as I pump my gasoline, I am going to think of how lucky I am to be paying only $3.00 per gallon!