The true cost of oil to the US taxpayer
Including all of the following aspects to the price the individual US consumer pays at the pump makes the cost of a gallon of imported gas approximately $26 dollars. This amounts to about $15,400 per year for the average car in the US, or 70% of the median household income given 2.3 cars per household.
The true cost of importing oil to the US includes the following aspects:
- The cost of the oil ($2.50)
- Oil-related defense expenditures ($3.79)
- The loss of domestic employment and related economic activity due to cash outflow for oil ($3.23)
- The reduction in investment capital ($10.85)
- The loss of local, state and federal tax revenues ($1.18)
- The economic toll periodic oil supply disruptions impose on the domestic economy ($3.65)
- Federal subsidies for oil & gas industry ($0.69)
- The market cost of carbon ($0.18)
- Pricing shown per US tax payer; assumes $60 per barrel of oil and $20 per ton of CO2
Source: Testimony of Milton R. Copulos, President, National Defense Council Foundation, before the Senate Foreign Relations Committee, March 30, 2006; IMF, 2008; EIA; CleanTech Group, 2007; US Census Bureau; Experian Automotive; Paper presented to Congressional staff members by NDCF President Milt Copulos, January 8, 2007
