[Wyzz Kydd]

Originally Posted by Slippy

Is the petroleum industry subsidized? I can't find a clear answer online, some sources say > $5T a year.

The government makes more money taxing the sale of gas than the oil companies make producing it.

[Slippy]

Originally Posted by Wyzz Kydd

The government makes more money taxing the sale of gas than the oil companies make producing it.

Does that mean the petroleum industry receives subsidies or not?

The government could make significantly more taxing oil companies without the special tax provisions for oil companies. The 20 largest oil companies are stated to have an effective 12% tax rate, seems heavily subsidized to me. I'm curious how it compares to the subsidies EV development receives.

[ST1LE]

Originally Posted by Wyzz Kydd

The government makes more money taxing the sale of gas than the oil companies make producing it.

Oil company margins are much higher than 18 cpg.

[cooldawg]

Originally Posted by ST1LE

Oil company margins are much higher than 18 cpg.

For sure, but most states levy taxes on gasoline and diesel as well. Indiana is increasing ours right now- in the middle of a recession.

[Wyzz Kydd]

Originally Posted by ST1LE

Oil company margins are much higher than 18 cpg.

Perhaps, perhaps not.

Unfortunately total tax per gallon is not 18 cents. That's just the federal piece. Texas adds another 20 cents. California adds 53 cents.

[Alan47717]

Originally Posted by Slippy

Is the petroleum industry subsidized? I can't find a clear answer online, some sources say > $5T a year.

The oil industry and the EV battery industry are both subsidized. Why we are subsidizing the oil industry has always been a mystery but there it is.

That is a separate issue from the consumer end of it. It has been mentioned that the EV taxation issue will be "sorted out" eventually and it probably will, about 10 to 15 years down the road after the burden of maintaining existing levels of road tax income has been maintained by increasing the gas taxes paid by a dwindling ICE fleet. It certainly will not be while the objective to hold manufacture's to their stated EV volume targets is being pursued.

[Wyzz Kydd]

Originally Posted by Alan47717

The oil industry and the EV battery industry are both subsidized. Why we are subsidizing the oil industry has always been a mystery but there it is.

That is a separate issue from the consumer end of it. It has been mentioned that the EV taxation issue will be "sorted out" eventually and it probably will, about 10 to 15 years down the road after the burden of maintaining existing levels of road tax income has been maintained by increasing the gas taxes paid by a dwindling ICE fleet. It certainly will not be while the objective to hold manufacture's to their stated EV volume targets is being pursued.

How, exactly, is the oil industry subsidized?

Explicit subsidies, not implicit. The implicit subsidies supposedly provided to the oil industry are bogus. Not penalizing a company for emissions that aren't necessarily occurring, or even attributable to then isn't a real subsidy, it's an environmental sideshow.

[ST1LE]

Originally Posted by Wyzz Kydd

Perhaps, perhaps not.

Unfortunately total tax per gallon is not 18 cents. That's just the federal piece. Texas adds another 20 cents. California adds 53 cents.

Fair enough, and I did make the assume you meant federal.

[Wyzz Kydd]

Originally Posted by ST1LE

Fair enough, and I did make the assume you meant federal.

The distinction is important in some cases! The other poster who is claiming that the oil industry is subsidized is likely thinking of State level subsidies designed to attract business (and jobs) not Federal subsidies.


Here in Georgia, there isn't a gas tax, so Fed is all we pay. In Cali, the state and feds scarf up approximately 14% right off the top, pure profit. Thats a much better return than the oil companies are getting.

[Alan47717]

Originally Posted by Wyzz Kydd

How, exactly, is the oil industry subsidized?

Explicit subsidies, not implicit. The implicit subsidies supposedly provided to the oil industry are bogus. Not penalizing a company for emissions that aren't necessarily occurring, or even attributable to then isn't a real subsidy, it's an environmental sideshow.

I'm really not sure if you're being serious or not. A 3 second Google search will confirm the oil and gas industry is heavily subsidized to the tune of tens of billions of dollars for things like "exploration of new sources". And that doesn't include indirect subsidies for military costs associated with protecting oil company interests in unfriendly places.

[CHASLT1]

Only EV i would ever buy again would be a small S10 size reg cab pickup. If gas goes below sub $3a gal for prem and stays like that for 3 years i would go back to a fast gas car in a flash.

[OB0001]

no never

[Need4Camaro]

Just wasn’t meant to be…

https://www.autoevolution.com/news/2...in-195013.html

I’m proud of that mighty 6.2L rejecting that nonsense right from the start! Said if we couldn’t come undone, it would be mutual destruction

[Gen6cyl]

Originally Posted by Need4Camaro

Just wasn’t meant to be…

https://www.autoevolution.com/news/2...in-195013.html

I’m proud of that mighty 6.2L rejecting that nonsense right from the start! Said if we couldn’t come undone, it would be mutual destruction