Gasoline tax is Germany is almost $4.00 per gallon. In the USA it averages $.40 per gallon. that is the reason for the difference in retail price.
recent economist research indicate that demand for gas has become more inelastic, not less. this may be the increased urbanization (more people live in urban areas today than in the past), higher CAFE standards, dual income families, or even the increased technology that allows virtual offices. the result is that people do not substantially change their driving habits when the price increases.
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