Now credible estimates of federal oil subsides range from 10 to 52 billion dollars a year.
The US uses 19 million barrels of oil a day or 6.9 billion barrels a year.
The current price per barrel of oil is about 100 dollars
Therefore we spend 690 billion dollars a year on oil.
The subsidies only lower the price of oil by 1% to 7%
So tell me where do you come up with the 8.50 a gallon number?
As you can see in the UK the largest piece of the pie that is the price of gasoline is not production but rather the taxes.
$8.50 per gallon is simply the price payed in other countries like France.
As your link pointed out the US government spends $10 to $52 Billion subsidizing the oil industry, so you concede the free market is not as ridged as you initial made it out to seem. How much do we spend subsidizing the Volt again?
You also pointed out how in the UK oil is taxed more, which shows that not only do we taxpayers subsidize the oil industry, but the US government is also more lenient on taxes when it comes to buying oil... which encourages more buying of oil as opposed to other countries. If oil were taxed more like it is in other countries, this also would alter the demand in favor of new technology and cars like the volt.
Perhaps we wouldn't be paying 8.50/gallon if oil wasn't subsidized... again that number was just based on current ppg in European countries. But you still proved my point that the US government has already altered the free market game in favor of Oil companies.... which is the reason that they are now subsidizing new. Uw technology such as the volt to level the playing field.