Gasoline Taxes and Rising Fuel Prices in the Aftermath of Katrina

Research Report

Gasoline Taxes and Rising Fuel Prices in the Aftermath of Katrina

September 9, 2005

Abstract

In the aftermath of Hurricane Katrina there have been proposals both to cap gasoline prices (e.g. Hawaii) or to suspend the collection of state or federal gas taxes (e.g. Georgia) as a response to rising gas prices. Although retail gasoline prices have reached an all-time high, gasoline taxes are not to blame. Gasoline taxes (both federal and state) average 43 cents per gallon and have fallen in real terms. Gasoline prices and taxes do vary across regions but there is little correlation between tax rates and prices.

Research Area: 

Cross-Center Initiative

Cross-Center Initiative: 
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