It's a tax based on the elasticity of the demand and supply. The demand for oil is hardly inelastic (people definitely buy less gas if it's more expensive). ht

It's a tax based on the elasticity of the demand and supply. The demand for oil is hardly inelastic (people definitely buy less gas if it's more expensive). https://en.wikipedia.org/wiki/Tax_incidence https://en.wikipedia.org/wiki/Tax_incidence