$ gas prices = WOW!

[Mr. Bloom]

I'd never have known that US fuel was so much cheaper because of tax dollar subsidies.

Contrary to what some have implied (but not supported), this is not true. There are no subsidies to oil any different from other businesses in the US or elsewhere under standard accounting rules and normal standards of determining taxable income. Example: some say it's a subsidy to allow an oil company to expense their exploration costs (thereby reducing their taxable income)...but they don't make that same argument saying a technology company is subsidized when they expense their R & D. In the same way, allowing an oil company to use a highway built for the general welfare and use of others is not a subsidy...but some wrongly argue it is.

Differences in gas prices in different countries are more heavily influenced by taxes, refining capacity, distribution network, and shipping costs.

Eta: I was typing while jobob was posting...I appreciate her clarification

[westtexas]

Contrary to what some have implied (but not supported), this is not true. There are no subsidies to oil any different from other businesses in the US or elsewhere under standard accounting rules and normal standards of determining taxable income. Example: some say it's a subsidy to allow an oil company to expense their exploration costs (thereby reducing their taxable income)...but they don't make that same argument saying a technology company is subsidized when they expense their R & D. In the same way, allowing an oil company to use a highway built for the general welfare and use of others is not a subsidy...but some wrongly argue it is.

Differences in gas prices in different countries are more heavily influenced by taxes, refining capacity, distribution network, and shipping costs.

Eta: I was typing while jobob was posting...I appreciate her clarification

In addition to this, we must all remember that the oil companies we routinely buy gasoline from in the US (Shell, Exxon, Chevron, etc.) control a VERY small portion of the world's oil supply. They have very little influence over the final end dollar amount of a barrel of oil and thus our prices at the pump.

I remember a few years ago when prices rose a dollar in a few weeks and everyone was talking about the prices like we are now. On Facebook, there was a huge "group" that claimed we should boycott all Exxon stations for one day to make them lower the prices. My father told me that Exxon (one of the largest companies) controls about 3% of the world share of oil and that boycotting their company (or even all the major companies in the US) would effectively do nothing.

It's just interesting to think about how small the consumer is in all of this.