A Primer on Gasoline Prices

One needs to know what's happening with the world Oil situation these days - here's a good primer on where does the money you pay at the gas station eventually goes to.

Pop quiz for you - the tax component as a % has remained almost the same over the years - considering that the gas price in California today is almost twice what we were paying in 2000, that would mean the the government is earning twice as much in gasoline tax revenues - and certainly their costs related to administering gasoline tax has not increased much.

Also, considering that the property values have doubled in California over the last 4-5 years, again resulting in doubling of property tax revenues for the state government - why is the State government running on a deficit then.

Any comments explaining the above paradox would be welcome.

Primer on Gasoline Prices: "A PRIMER ON GASOLINE PRICES"