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this post was submitted on 03 Jan 2025
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Gasoline prices are heavily subsidized in the US, the gas price you complain about is cheap compared to other countries.
The commodity price for gasoline right now looks to be about 2 USD per gallon. Retail gasoline in the USA is at least a dollar more due to taxes and markup.
Subsidies may play a role as well, but the taxes in some countries are extreme by American standards. My take on it is that a fuel tax is effectively neutral if it brings in enough revenue to pay for the road system.
Any price lower than that required to compensate for all the negative externalities of both driving and using fossil fuels to do it still counts as subsidized.
A failure to set an excise tax on a product or service that offsets its externalities is not a subsidy. A lower tax rate than a competing product is arguably a subsidy.
I'm not aware of any modern societies that make a credible attempt to adjust the price of all or most goods and services to include their externalities. That sounds like a good idea in theory, but very difficult to implement in practice.