Fill up your vehicle soon. Isaac likely to bring higher pump prices.

August 26, 2012

The federal tax on gas is 18.4 cents per gallon. It's been at that rate since 1993.

In July, the average state gasoline excise tax was 21 cents per gallon, up fractionally from the American Petroleum Institute's April gas price survey.

And all other state charges — sales, gross receipts, county and local taxes, as well as oil inspection, underground storage and various environmental fees — account for 9.5 cents paid on a gallon of gas. These other taxes and fees also were down slightly from April.


48 point 9 cents per gallon taxes on gallon of gas in July 2012That meant the average tax amount that U.S. drivers paid on each gallon of gas in July was 48.9 cents.

That's also this week's By the Numbers figure.

Fill 'er up: You might want to remember that tax amount when your gas prices go up here in the next few days.

And yes, they will go up.

And yes, some folks will immediately start pointing fingers at lawmakers in misguided attempts to make political points.

But geography is as much to blame as anything. That and greed.

As the the National Hurricane Center forecast map below shows, Tropical Storm but soon to be Hurricane Isaac …


Hurricane Isaac forecast path 5 PM EDT Aug 26 2012_NHC

… is heading right to the heart of the Gulf of Mexico's offshore oil rig field.


Oil rig platforms in Gulf of Mexico in Isaac path Aug 26 2012

However, it's not so much the closing and evacuation of the offshore rigs that causes us to pay more to refuel our cars.

The big pump price problem is when hurricanes force Gulf Coast oil
refineries to go offline.

These facilities provide the fuel for most of the eastern half of the United States, meaning that if production is disrupted for too long, states must dip into emergency fuel supplies or pay a premium to import fuel from somewhere else.

That happened in 2008 when Hurricane Ike struck the Texas coast.

Of course, the gas station price boards reflect higher fuel costs the minute a tropical system gets into the farthest reaches of the Gulf.

A cynic might say that oil companies and gasoline dealers take advantage of the bad weather to jack up prices even before a storm's full effect is known.

I'm not saying I'm a cynic. I'm just saying.

You also might find these items of interest:

Share:

The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

Latest Posts
The latest Dirty Dozen tax scam list is familiar because too many are still falling for the schemes

March 5, 2026

Tax filing season is also peak time for tax scams. Be on the lookout for…

Read More
Hello Tax Season 2026

Happy New Tax Year! Are you ready to file your 2025 tax return? I know, too early to ask. But Tax Day 2026 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol’ blog’s tips and other tax reminders should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April’s Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the IRS by that date. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

Comments
Leave the first comment