Shocking low gasoline prices and big trucks


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North America » United States
April 19th 2009
Published: April 19th 2009
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We had known about the low taxes on US gasoline before our arrival. The prices seem on the first glance not so low for someone used to Euros and liters, but when you do the conversion exercise the result is shocking - a shocking low price. It is average 2.10 US$ for a gallon. A gallon is 3.8 liters. This is 55 US cent for the liter or a shocking low 40 Euro cent! Controversial thoughts crossed every time my mind when I filled up the car for a mere 30 US$. Not imaginable in Europe where you are used to a range of 50 Euro. I traveled many countries and this are the lowest prices experienced. Even countries like China or Central American countries have higher prices. Why does have such a rich nation as the US such low gasoline prices? The major reason is the very low tax of just few percent sales tax. That is a total different approach to the European high taxes. But why? Is it the culture of unlimited freedom on the highways or the lack of response for the environmental costs? I think there is no answer to it. We realized that the situation is dependent on the US state. California has certainly the highest density of Japanese gasoline efficient cars. May be this is a result of the stricter emission laws. As we moved to Central US the cars became bigger and huge trucks ruled the roads.

The gasoline shock of 4 US$ per gallon from last year is still present in the mind of the people. We overheard a discussion of some guys in the hot spring pool in Durango. They agreed that there is no reason to drive a truck unless you need to pull something big, but it became also clear that a big truck is something like a hobby and lifestyle. I think it will take time until people become aware of the environmental cost related to a big car and that they can be gracious about the low gas tax. Why the government keeps it so low and no efforts are made to use additional gasoline taxes for environmental improvements seems to me a miracle. Otherwise what would be the benefits to reduce the tax in Europe? I do not understand why there can be a tax on a product that is much more than the original value. It feels like there is a government that uses any possible excuse to put more taxes on gasoline. What happened to the Oeko-Tax levied and introduced by the Green Party in Germany? I feel somehow angry about the high German prices when observing the low prices in the US. The right answer might a price somewhere in the middle!

Practicalities:
1 Gallon (3.8l) costs between 1.79 - 2.30 US$ depending on state and brand name
Lowest price seen is 1.79 US$ - 0.35 Euro a liter!
1 Euro = 1.33 US$


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