Federal Excise Taxes to Motor Fuels: Gasoline, Diesel, Aviation Jet Fuel

Federal Excise Taxes
Federal Excise Taxes placed on specific energy sources tend to reduce energy demand for these energy sources in both the short and the long run. The federal government imposes excise taxes on almost all petroleum products (including petroleum additives) and coal (see Table 1). The federal government also imposes federal excise taxes on many transportation uses of methanol, ethanol, natural gas, and propane and imposes a fee on electricity produced from nuclear power plants and nuclear power electricity. (more…)