A Taxing Journey
What determines the price of gas at your local station? It isn’t just the price of a barrel of crude oil. By far the biggest factor in determining the price at the pump is the taxes — or subsidies — that a government levies on gas. In Venezuela, a state that subsidizes prices, a gallon ...
What determines the price of gas at your local station? It isn't just the price of a barrel of crude oil. By far the biggest factor in determining the price at the pump is the taxes -- or subsidies -- that a government levies on gas. In Venezuela, a state that subsidizes prices, a gallon of gas only sets you back 15 cents. In Germany, however, a state that taxes gas heavily, a gallon costs $5.53. So, how far you can go with $20 of gas depends on where you start your engine.
What determines the price of gas at your local station? It isn’t just the price of a barrel of crude oil. By far the biggest factor in determining the price at the pump is the taxes — or subsidies — that a government levies on gas. In Venezuela, a state that subsidizes prices, a gallon of gas only sets you back 15 cents. In Germany, however, a state that taxes gas heavily, a gallon costs $5.53. So, how far you can go with $20 of gas depends on where you start your engine.
More from Foreign Policy

What Putin Got Right
The Russian president got many things wrong about invading Ukraine—but not everything.

Russia Has Already Lost in the Long Run
Even if Moscow holds onto territory, the war has wrecked its future.

China’s Belt and Road to Nowhere
Xi Jinping’s signature foreign policy is a “shadow of its former self.”

The U.S. Overreacted to the Chinese Spy Balloon. That Scares Me.
So unused to being challenged, the United States has become so filled with anxiety over China that sober responses are becoming nearly impossible.