I have a theory that perhaps those areas with extremely high taxes on petrol in the first place are somewhat more insulated against feeling the pain of price increase because they have already invested in more fuel efficient vehicles. In other words, the price increase of the fuel represents a smaller portion of the overall price when taxes are factored in.
That's not necessarily a recommendation to increase taxation, but it should at least be considered. As I continuously argue, the ONLY reasonable and effective way to artificially manipulate oil consumption from the governmental level is via taxation. All else is corruption and ignorance.
|