Newsom still opposes gas tax holiday in California as prices soar. Here’s why

Amid soaring gas prices following attacks by the United States and Israel on Iran, proposals to suspend California’s gas taxes are getting a no-go from Gov. Gavin Newsom.

California has the highest gas tax in the nation at 61.2 cents per gallon, The Sacramento Bee previously reported.

According to AAA, the average price for a gallon of regular gasoline in California reached about $6.16 on Monday, May 11. Prices have climbed about $1.50 per gallon in the state since the Iran war began.

President Donald Trump on Monday said he plans to suspend the federal gas tax of 18.4 cents per gallon to reduce prices, CNN reported. But that would require congressional approval.

Newsom spokesperson Anthony Martinez slammed proposals for a tax holiday as a “gimmick” that would not help motorists and would instead strip funding for road repairs.

“Let’s be clear about the math: the federal gas tax is 18 cents a gallon. Trump’s Iran War surcharge? According to GasBuddy, it’s adding roughly $1.35 per gallon right now, costing American drivers $571 million today alone,” Martinez said.

“This is a crisis of Trump and the Republican Party’s making, and Governor Newsom isn’t going to sacrifice California’s roads, bridges, and clean air to help them distract the American people,” he said.

In a March news release, Newsom’s office said it’s a myth that suspending gas taxes would necessarily lower prices for consumers. Instead, oil companies could pocket the savings, it said.

Here’s what to know:

What gas does the California gas tax pay for?

The state gas tax chiefly provides funding to maintain roads and highways in California, the Legislative Analyst’s Office said.

A portion of the money also goes to the state budget, state parks and agricultural programs. Federal gas taxes help pay to maintain highways and provide mass transit.

Is California running out of gas?

Energy experts warn that supplies could become tighter — and prices could rise even more — if the war in Iran continues.

California has enough incoming fuel shipments to help stabilize prices for about six more weeks, The Sacramento Bee previously reported.

The New Corolla, an oil tanker that traveled through the Strait of Hormuz before heading to California, recently unloaded its cargo in Long Beach.

After that shipment, the state no longer has a guaranteed replacement for up to 200,000 barrels of oil per day previously sourced from the Persian Gulf.

Officials said gas prices could potentially stabilize around $6.50 per gallon, or at least remain below $7, if alternative supply chains hold.

However, other experts warn prices could climb another $2 per gallon.

Why do gas prices rise in late winter and spring?

According to AAA, gas prices usually begin climbing in late winter and early spring, because summer-blend fuel costs more to produce.

“Summer gasoline has a lower Reid vapor pressure, which helps reduce evaporation in warmer temperatures,” AAA said in the Feb. 17 news release.

“California is the first state in the nation to make the transition, while East Coast states are the last,” the automobile association said in a Tuesday, Feb. 17, news release.

Many states must switch by May 1, and most gas stations nationwide are required to sell summer-blend fuel by June 1.

The switch begins as early as February in some parts of California. The Golden State is required to use summer-blend fuel by April 1, according to AAA.

During this time, the organization said, some refineries also conduct maintenance, which can further tighten supply and add pressure to prices.

“Higher crude oil prices have also put upward pressure on pump prices,” the automobile association said.

This story was originally published May 13, 2026 at 11:00 AM.