State Gas Taxes Add to the High Cost of Gasoline

The Energy Information Administration says from March to April gas prices rose an average of $1.11 per gallon. The war in Iran and the Straight of Hormuz being practically closed is to blame.

Getting more specific, the administration says from March 2nd to April 27th gas prices jumped from an average of $3.02 to $4.12.

The highest prices for gas are found in California. The Golden State residents face an average of $5.79 per gallon. Besides the shortage of oil from the war, a number of other factors also come into play when it comes to the average price of a gallon of gas.

Half of the cost of a gallon of gasoline is the cost of the crude oil. You can add 20% for refinery costs and another 11% is added into the cost from marketing and distribution. The remaining 18% of the cost per gallon is from federal and state taxes.

The federal government’s gas tax is 18.4 cents. That rate was set in 1993 and has not changed since. States levy their own taxes and two of the PIA Western Alliance states — California and Washington — have the highest gas taxes in the United States.

This is the tax per gallon of gas in the PIA Western Alliance States from highest to lowest:

California —71 cents per gallon

Washington — 59 cents per gallon

Oregon — 40 cents per gallon

Montana — 34 cents per gallon

Idaho — 33 cents per gallon

Nevada — 24 cents per gallon

Hawaii — 19 cents per gallon

New Mexico — 19 cents per gallon

Arizona — 19 cents per gallon

Alaska — 9 cents per gallon

Excise tax per gallon in the PIA Western Alliance states from highest to lowers. The U.S. average is 29 cents per gallon:

California — 61 cents per gallon

Washington — 55 cents per gallon

Oregon — 40 cents per gallon

Montana — 33 cents per gallon

Idaho — 32 cents per gallon

Nevada — 23 cents per gallon

Arizona — 18 cents per gallon

New Mexico — 17 cents per gallon

Hawaii — 16 cents per gallon

Alaska — 8 cents per gallon

Source link: USA Facts — https://bit.ly/4wB9k0M