Gas tax

A fuel tax (also known as a petrol, gasoline or gas tax, or as a fuel duty) is an excise tax imposed on the sale of fuel. In most countries the fuel tax is imposed on fuels which are intended for transportation. Fuels used to power agricultural vehicles, and/or home heating oil which is similar to diesel are taxed at a different, usually lower rate. The fuel tax receipts are often dedicated or hypothecated to transportation projects so that the fuel tax is considered by many a user fee. In other countries, the fuel tax is a source of general revenue. Sometimes, the fuel tax is used as an ecotax, to promote ecological sustainability. Fuel taxes are often considered by government agencies such as the Internal Revenue Service as regressive taxes.

Role in energy policy

Taxes on transportation fuels have been advocated as a way to reduce pollution and the possibility of global warming and conserve energy. Placing higher taxes on fossil fuels makes petrol just as expensive as other fuels such as natural gas, biodiesel or electric batteries, at a cost to the consumer in the form of inflation as transportation costs rise to transport goods all over the country.

Proponents advocate that automobiles should pay for the roads they use and argue that the user tax should not be applied to mass transit projects.

The Intergovernmental Panel on Climate Change, the International Energy Agency, the International Monetary Fund, and the World Bank have called on governments to increase gasoline tax rates in order to combat the social and environmental costs of gasoline consumption.

Tax rates

International pump prices for diesel and gasoline are tracked by several websites, including Bloomberg L.P. Price differences mostly reflect differences in tax policy.

A Nature study has shown that while gasoline taxes have increased in more countries than they have decreased in during the period 2003–2015, the global mean gasoline tax has decreased due to greater consumption in the low tax countries.

Asia

China

Chinese gasoline taxes have increased the most among the top twenty -emitting countries over the period 2003–2015.

In China, fuel tax has been a very contentious issue. Efforts by the State Council to institute a fuel tax in order to finance the National Trunk Highway System have run into strong opposition from the National People's Congress, largely out of concern for its impact on farmers. This has been one of the uncommon instances in which the legislature has asserted its authority.

Hong Kong

The following is a list of fuel tax rates for different fuels in Hong Kong:
*Aviation fuel: HK$6.51
*Light diesel oil: HK$2.89
*Leaded petrol: HK$6.82
*Unleaded petrol: HK$6.06
*Ultra low sulphur diesel: HK$2.89
*Euro V diesel: HK$0

Singapore

The following is a list of fuel tax rates for different fuels in Singapore:
*98 Octane and above petrol: S$0.79 per litre
*92 to 95 Octane petrol: S$0.66 per litre

India

In India, the pricing of fuel varies by state, though central taxes still are part of the pump price of fuel. The Central and state government's taxes make up nearly half of petrol's pump price. The Central govt has different taxes, which amount to about 10–20% of the final cost. The states taxes vary, but on average end up making about 17–20% of the final cost. As a result, approximately 50% - 60% of the pump cost goes to the government in the form of different taxes.

For example, in Delhi, as of February 18, 2021, price of petrol is per litre. Out of this go to Central Govt of India in the form of excise and customs tax. is collected by state government in the form of sales tax and entry tax. Thus, a total of is collected due to various taxes (which accounts for around 58% of the total price).

Israel

In Israel, tax on fuel is 1.35 USD per liter which includes direct fuel tax and VAT. This totals to 78% of total pump price.

Europe

Kerosene tax can be levied throughout the European Union on domestic flights and between Member States according to the 2003 Energy Taxation Directive.

France

As of 2017, the excise tax on gasoline was €0.651 per liter (regional prices varied from €0.407 to €0.6682). With a VAT rate of 20%, the percent of the total price of gasoline that came from taxes was 63.9% The excise tax on diesel fuel was €0.531 per liter (€0.5307 to €0.5631). With the 20% VAT, 59.3% of the total cost of diesel fuel was taxes.

Petroleum products destined for utilisation by aircraft engaged in commercial flights outside of the customs territory of continental France are exempt from all customs duties and domestic taxes. Recently, a rise of 23% in the diesel fuel tax has caused serious protests in major cities of France, leaving disruption and damage behind them. Before the protests, the French government expected to increase both the petrol and diesel taxes until they both reached €0.78 per liter in 2022.

Germany

Fuel taxes in Germany are €0.4704 per litre for ultra-low sulphur Diesel and €0.6545 per litre for conventional unleaded petrol, plus Value Added Tax (19%) on the fuel itself and the Fuel Tax. That adds up to prices of for ultra-low sulphur Diesel and for unleaded petrol (December 2019).

Netherlands

The sale of fuels in the Netherlands is levied with an excise tax. As of 2015, petrol excise tax is EUR0.766 per litre and diesel excise tax is EUR0.482 per litre, while LPG excise tax is EUR0.185 per litre. The 2007 fuel tax was . On top of that is 21% VAT over the entire fuel price, making the Dutch taxes one of the highest in the world. In total, taxes account for 68.84% of the total price of petrol and 56.55% of the total price of diesel. A 1995 excise was raised by Dutch gulden 25 cents (€0.11), the ''Kok Quarter'' (€0.08 raise per litre gasoline and €0.03 raise per litre diesel), by then Prime-Minister Wim Kok

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