- WASHINGTON (Reuters) - So you think you're getting a good deal on a tank
of gasoline these days? Not so, if all the oil industry tax subsidies received
from the federal and state governments and other costs that went into producing
that gallon of gasoline were included in the pump price.
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- Such external costs push the price of
gasoline as high as $15.14 a gallon, according to a new report released
Tuesday by the International Center for Technology Assessment. ``In reality,
the external costs of using our cars are much more higher than we may realize,''
the Washington-based research group said in its report. The report examined
more than 40 separate cost factors the group said it associated with gasoline
production but aren't reflected by the price of gasoline at the pump. These
external costs total up to $1.69 trillion per year, according to the report.
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- The group points out that the federal
government provides the oil industry with tax breaks to help U.S. companies
compete with international producers, so gasoline remains cheap for American
consumers. The Department of Energy is forecasting that the national price
for regular unleaded gasoline will average $1.02 during the current quarter,
the lowest price on record for any three-month period when adjusted for
inflation.
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- Tax subsidies don't end at the federal
level, as the group said most state income taxes are based on oil firms'
lower federal tax bills, which result in companies paying $123 million
to $323 million less in state taxes. In addition to tax breaks, the federal
government provides up to $114.6 billion in subsidies annually that support
the extraction, production and use of petroleum, such as research and development
and export financing.
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- The federal government also spends up
to $1.6 billion yearly on regulatory oversight, pollution cleanup and liability
costs connected to the oil industry, the group said. In addition, U.S.
Defense Department spending allocated to safeguard the world's petroleum
resources totals $55 billion to $96 billion a year, according to the group.
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