In fact, in 1999 gasoline hit a near-record low of 2 percent of total expenditures. That compares with a high point of 5 percent in 1981. The Pump , a CNN special report that describes the factors affecting the price of gasoline and includes a calculator that allows motorists to determine the fuel expenses of their vehicles. The average tends to be about 20 cents a gallon. Add that amount to the 18.4 cents per gallon nationwide federal tax, and it's easy to see how taxes make up about 35 percent of gasoline's price.
Some cities even add their own taxes as well.
Despite what seems like a huge tax bite, gasoline taxes in the United States are among the lowest in the world. In countries such as Britain and France, taxes on gasoline are 80 percent or more of the pump price. Gasoline marke ters also have contributed to the cost reductions by constructing more efficient outlets that sell much higher volumes than stations and convenience stores of just a few years ago. Much of the cost savings at refineries have stemmed from the installation of new technologies that reduce energy costs, increase the amount of product yielded by each barrel of oil and upgrade overall product quality. These investments, which have totaled billions of dollars over the past 10 years, were on top of significant outlays to make cleaner-burning fuels, reduce refinery emissions and install safer underground storage at retail outlets.