The American Petroleum Institute says the cost of motor gasoline to U.S. consumers last year was the fourth lowest in history when adjusted for inflation.
In nominal terms, the average U.S. retail pump price in 1996 was 128.8¢/ gal, up 8.3¢/gal from 1995.
API said the increase was due largely to higher crude oil prices during the year. Crude costs are the largest component of the pump price of gasoline and averaged 49.3¢/gal last year.
Taxes totaled 42.7¢/gal. The federal tax was 18.3¢, the weighted average of state taxes was 22.4¢, and estimated local taxes were 2¢.
API said the combined costs to manufacture, distribute, and market gasoline were 36.8¢/gal, a record low for that component of the total price.
It said the pump price of 124.1¢/gal in 1995 was the lowest in history when adjusted for inflation, 1994 was the second lowest at 124.2¢, and 1993 was the third lowest at 127¢.
"While crude oil prices vary from year to year, the taxes have continued to go up, but the cost of making and distributing the gasoline itself has continued to fall," API said.
It said the cost per vehicle mile traveled in 1996 was 5.7¢, slightly above the record low of 5.5¢ in 1995. The record high was 15¢/mile in 1980.
Highway improvements
Meanwhile, the American Highway Users Alliance said gasoline taxes and other highway fees not only fully fund road improvements, they also subsidize many non-road government activities.
Congress is considering legislation that would set federal highway funding policy.
A study prepared for the alliance said motorists paid $142 billion in road taxes and user fees in 1994, the most recent year with complete statistics, while only $82 billion, or 58% of the total collected, was spent directly on roads.
"That means that 42¢ out of every dollar collected in highway taxes, tolls, and fees at every level of government was used for non-highway purposes," it said.
The study also examined state collections and said only Alaska, Oregon, South Dakota, and the District of Columbia collected less road taxes and fees than they spent on roads.
William Fay, alliance president, said, "This report clearly shows that motorists are not undertaxed, rather they are substantially overtaxed and have been for some time. There is no excuse for letting our highway system fall into disrepair while we're forcing motorists to subsidize non-highway functions of the government."
James Kolstad, American Automobile Association vice-president for public and government relations, said, "This report proves that motorists are paying for better highways and bridges. They ought to be getting what they pay for."
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