Anything that we use will be taxed and you wont save a dime. I can buy farm fuel for about 2.00 per gallon but it is illegal to burn in on road vehicles. No road taxes is the reason. If you think the money men are going to settle for less money you are living in a dream world. Its going to go for whatever the market will bear. In europe they drive diesels and 35 mile to the gallon junk but their gas prices are worse than ours. So much for that theory. ED
They also have a VAT (value added tax) every step of the process adds 20% so the maker has a price, adds for income and other taxes and then adds 20% VAT then the wholesaler adds profit, taxes, and 20% VAT, retailer adds Profit, over head, taxes and 20% VAT.
As you can see if they could sell to the whole saler for $1 a gallon, it would cost 1.20 with the VAT.
If the whole saler made 10% and sold it for 1.32 a gallon add the 20% and you sell to the retailer 1.58 add 10% and the 20% vat and you have a sell price to the consumer at 2.09 a gallon.
With out the VAT it would sell for $1.20. And that does not include any other products needed to make the product. Add in 20% for all the items needed to make the gallon of fuel Crude oil, chemicals for additives, filters, and on and on. No wonder why they pay 2 -3X what we pay a gallon.
Our taxes are still WAY TOO HIGH. We do not need to model ourselves after the morons in Europe.
