Gas Taxes, Gas Prices, and Fuel Economy

Research Report

Gas Taxes, Gas Prices, and Fuel Economy

April 24, 2012


Gas prices have increased substantially since the beginning of this year, continuing their upward trend since 1990. American drivers are pushing the federal and state governments to implement policies to lower gas prices. But gasoline taxes have not contributed to the increase in gas prices. Rather than bringing pump prices down, lowering gasoline taxes or having gas tax holidays will mostly shift gasoline purchases across state lines or encourage people to fuel up during the gas tax holidays. Such proposals will siphon away revenues from already cash-strapped states and do little to help consumers and the economy.
Research Area: 

Cross-Center Initiative

Cross-Center Initiative: 
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