You don't mind if I correct you, do you? :wink:
An04Prius said:
A substantial per cent of the price in Europe is tax. The total price accomplishes the same "self rationing" effect that a comparable high price in U.S. would.
On fuel, the tax is not a percentage, but additionals. That is, tax is added as a fixed figure, that does not change with the price per gas. (apart from VAT) This does give some cushioning when the price of oil fluctuates:
Example:
Price of oil: $25 Price of US gas: $1 Price of IT petrol €0.9
Price of oil: $50 Price of US gas: $2 Price of IT petrol €1.2
BUT, the tax money stays in the Eu country, to be used for public transit, conservation programs, alternative energy sources R&D, etc
May I bore you with the REAL Italian "excuses" for adding additionals?
1935 - War in Abissinia - 0.001 €
1956 - Suez Crisis - 0.007 €
1963 - Vajont disaster - 0.005 €
1966 - Florence Flodding - 0.005 €
1968 - Earthquake in Belice - 0.01 €
1976 - Earthquake in Friuli - 0.05 €
1980 - Earthquake in Irpinia - 0.04 €
1982 - mission in Lebanon - 0.16 €
1996 - Mission in Bosnia - 0.11 €
2003 - Train driver's contracts - 0,02 €
2005 - Buses renewal - 0,05 €
As you can see, only the last two are directly involved with public transport, the previous two were to finance the wars (now over), the previous three where to finance natural disasters (well finished and reconstructed) and so on.... But, these additionals still remain and we do not really know where the money goes... it just goes!
The sum is 0.45 € per litre which is $2.18 per gallon, which, added to the price of gas, the 20% VAT is added to make the price we pay at the pump. (Yes we are taxed on taxes).