when the gas guzzler tax was imposed in 1978 prices at the pump had increased 75 from six years earlier meanwhile u s oil production peaked in 1970 and was falling steadily through the decade as demand increased 910
the opec oil embargo of 1973 added additional pain for consumers in the u s and abroad the decade is famous for its gas shortages and skyrocketing prices 11this is the environment in which the gas guzzler tax was passed its purpose was to incentivize more fuel conscious spending on the part of consumers and fuel efficiency on the part of manufacturers 12in 1984 jeep introduced the cherokee xj which is widely credited as the first sport utility vehicle suv 13 the suv didn t exist when the gas guzzler tax was passed but over the next 30 years it became the most popular type of vehicle sold in the u s in 2019 american consumers continued to favor trucks and suvs over cars nonseasonally adjusted passenger car sales in the u s for 2019 declined 10 9 to 4 7 million units versus 5 3 million units in 2018 sales of trucks minivans and suvs for the year totaled 12 2 million units up 2 8 from the 2018 figure of 11 9 million units according to an s p global market intelligence analysis 14auto manufacturers were keen to take advantage of a loophole in the gas guzzler tax and its interpretation through regulatory agencies like the epa that exempted light duty trucks from the law consequently the amount of gas guzzler tax collected by the u s in the fiscal year 2019 was under 43 million 15