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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.

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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. 

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TAX-SAVVY WAYS 
TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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