Gasoline is not the major percentage of petrolium consumption. You cannot cut back enough on gasoline to greatly impact petrolium demand.
Add to that, petrolium costs are less than 1/3 of what a gallon of gasoline costs. Taxes are by far the largest cost percentage of a gallon of gasoline. Tax on gas is a percentage, so the higher gas goes the taxes increase at an even higher rate.
The real pain caused by an increase of petrolium prices is felt in manufacturing. The cost to produce anything skyrockets. Jobs are cut to make up the difference.
Petrolium is the bedrock of production. Production doesnt end until the product has been transported. Everything you touch or eat is driven costwise by petrolium prices- directly in raw materials, energy, and manufacturing or indirectly by transportation.
Post by Justin Kaufman on Mar 12, 2011 21:36:51 GMT -5
I wonder if any of you guys remember when they used to post exactly how much per gallon was subject to federal tax????not the %. I recall when I first started driving (68 mustang, yeah!!) gas was like $1.10 ish and the tax was around $.58 or so..... So I wonder how much of the $3.30 is tax now??
So if my math is correct that was like 63%, which would figure todays dollars at $2.11???? If my math is right...........?