Energy Literacy Advocates Newsroom

So what does a tax on gasoline, specifically on fuel, look like?

Traditionally, any revenues collected from the tax go either to transportation specific funds or go to general government revenue. Those that go to transportation specifically can be considered as a user tax. In the past few years, several countries in Europe - Italy, the United Kingdom and France - have created an extra tax on fuel to decrease fossil fuel consumption and traffic congestion.

Recommendations for a potential US gas tax have claimed $4 to $5 as the optimal price per gallon to reduce fossil fuel consumption. The US is last among most developed countries in terms of its gas tax rate. (Click here to view this chart)

Raising the tax on gasoline, particularly that product used for fuel, is touted to improve infrastructure, increase investments in alternative energy, and decrease fuel consumption. Tomorrow we'll look at the pros for creating a new US tax on gas.