Government tells us fuel taxes are "green" If true, sales of petrol should be reducing. Are they?

Question

If fuel taxes are to reduce consumption by price rationing, fuel consumption should fall.
If it doesn't - it's not working.
That means it's just another goverment scam to gouge the tax payer for more money to throw away.
Nobody ever seems to ask if the strategy is actually working!

Answer 1

And you've only just realised that this is a Government scam.

Ask your local M.P. where the money goes - see what he says - bet it starts with a mumbling, huffing & puffing and rambling explanation that ends with you being totally confused and still not having the answer.

Answer 2

Wether or not the taxes decrease demand depends on the elasticity of the demand. And fuel has few alternatives, at least short of large public projects like nuclear plants and public transportation. So the demand doesn't fall by much just because the government adds on another tax, although it may slow the rate of increase in demand (people will buy more fuel efficient cars, etc. over time).


By the way, in the US the current taxes are about 44 cents for every gallon, or about 20% of what the price would be w/o taxes. 20%, compared to what, a 6% sales tax on most other things in my state.
But that still pales compared to what they tax gasoline at in Europe, sometimes 4 to 5 dollars per gallon, where as it still costs the same amount to produce there as it does here.
If you ask me, that is a tax that makes no economic sense...

Answer 3

Energy consumption per person in Europe is 1/2 what it is in the US where there are very low or no taxes on fuel. Part of the difference is due climate and the fact that there are greater distanced to travel in the US but economist think that is mostly due to the tax, and many are advocating the the US should also introduce carbon or fuel taxes. However there are diminishing returns on increasing taxes , so after they are already high further increases do not generate much more conservation.

Answer 4

i comprehend that this no longer possibly an answer yet I even have in simple terms emailed the 4 considerable petrol companies in New Zealand with here questionPetrol is now at $ninety two consistent with barrel. whilst are you going drop it to a life like fee? do no longer supply the time-honored spin well being care expert memories. in simple terms be truthful and supply up ripping us all off. Be thrilling to verify what line of bull they feed me. i will bypass on their replies.