Newsom again shuts down gas tax holiday amid skyrocketting fuel prices in California
Quite the contrary, I’m very proud of our efforts in low carbon green growth. I’m proud of the innovation. I’m proud of being the dominant force in terms of changing the way we produce and consume energy for this nation. I’m proud of our leadership and I’m proud of our competitiveness. I think it’s one of the biggest mistakes the Trump administration has made, um, vis *** vis China, uh, giving up, uh, the opportunity to compete in the next big global industry. You’ve seen China flood the zone with electric vehicles, 70%. Uh, of, uh, the supply chains, it’s about statecraft, it’s about, um, about not only flooding the zone with high quality inexpensive vehicles, but it’s also about locking in supply chains and it’s about statecraft in terms of locking in relationships and you’re seeing now some of the largest automobile manufacturers in the state. Not only in our state but across the United States make the case of how concerned they are about China’s dominance in this space in so many ways it’s our policies that allowed. Them to compete that have been rolled back by the oil companies. And rolled back by the Trump administration as it relates to our efforts, uh, you have seen, uh, the issue of transparency, uh, front and center in the state of California because of two special sessions that gave us the ability, *** window to look into the future. We had *** year to look into the future as it relates to, uh, what happened with the refineries. Valero and we had the opportunity because of that special session uh to prepare for that and we did just that over the course of the last year, last April, uh, through the last month uh we also as *** consequence of having that window into the future worked with the legislature to try to balance things out as relates to, uh, Kern County and some changes that we made. Uh, so it’s about *** pragmatic approach. Now, as it relates to the cost of fuels, California hasn’t changed anything as it relates to that cost. Those baseline costs have been static. But the cost at the pump has not been for one reason, Donald Trump’s recklessness as it relates to the war in Iran, period. Full stop. And what they’re trying to do is tell you and everybody else every single day, all these high paid lobbyists and the folks that are paid by them are telling you somehow it’s someone else’s fault. It’s Donald Trump’s fault. We had stable gas prices the last two years. Consistently, the only thing that changed was what the voters told us they wanted to change years and years ago, and that’s the annual CPI as it relates to, uh, the fund that pays for our roads and bridges and our infrastructure. Um, otherwise everything was status quo and despite all the screaming and yelling on the low carbon fuel standards, despite all that stuff, uh, that was being written about all that didn’t materialize. So this is Donald Trump’s crisis. of his making. And I continue to be very proud of Ronald Reagan. Who launched the California Air Resources Board. I’m very proud of Richard Nixon. Who created the Clean Air Act, Endangered Species Act, the Clean Water Act, and afforded California its waiver, uh, so that California can continue to lead in 1970 in terms of our efforts, uh, to not only grow our economy but to reduce our green gas, greenhouse gas emissions. That reaches. I Well Well, Donald is Donald Trump promoting that? Why isn’t Donald Trump providing *** federal gas tax holiday? He’s not promoting that. It’s interesting. That, uh, Rhonda Santos. One of his acolytes is not promoting it in Florida because they, he made the point last time they did, it wasn’t passed along to the consumer. There’s nothing that says you can’t pass that along. They pocket the difference. I think that tells you everything you need to know about that proposal or lack thereof from the president himself.
Newsom again shuts down gas tax holiday amid skyrocketting fuel prices in California
Updated: 11:54 AM PDT May 8, 2026
Gov. Gavin Newsom on Friday once again shut down the idea of a possible gas tax holiday as gas prices in the state climb near record highs and as experts suggest it’s something lawmakers could do to help consumers. “Is Donald Trump promoting that? Why isn’t Donald Trump providing a federal gas tax holiday?” the governor said when KCRA 3 asked him if he would consider the holiday. The gas tax suspension was discussed at a hearing at the state capitol earlier this week on oil and gas supply uncertainty that included lawmakers, energy officials within the Newsom administration, economists and other experts. California is grappling with a combination of a dwindling set of systems that help provide oil and gas in the state, heavy reliance on foreign fuel and the war in Iran that experts say makes the problem much worse and costs more expensive. | MORE | California diesel prices hit $7.49 as school districts scramble to adjust budgetsAs of Friday, the average price of a gallon of gas in California was $6.16. Nationwide, the average price of a regular gallon of gas $4.54 a gallon. At the hearing Tuesday, all sides acknowledged the biggest difference between the gas prices in California and the rest of the nation are related to the state’s environmental-related regulations, taxes and fees. Severin Borenstein, an economist with UC Berkely Haas, floated the idea to lawmakers at the hearing. He also suggested lawmakers could change the tax so that it rises when crude oil prices are low and drops when oil prices are high. “There’s no question it could help consumers,” he said. California is relying more than ever on foreign fuel. State data shows nearly a third of its foreign crude oil supply comes from countries that require the product to be shipped through the Strait of Hormuz. Two refineries shut down within the last six months as California leaders and regulators updated clean air standards and added new rules for the oil and gas industry related to product reserves and company profits. The state has been working to end its reliance on oil and gas by 2045, a deadline that’s in state law. The latest state data shows nearly 90% of registered cars in the state still rely on gas. When KCRA 3 asked the governor if he had any regrets or remorse about his approach to the oil and gas industry in his two terms as governor, he said, “no, quite the contrary.” “I’m proud of our leadership and our competitiveness,” he said. See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel
SAN FRANCISCO —
Gov. Gavin Newsom on Friday once again shut down the idea of a possible gas tax holiday as gas prices in the state climb near record highs and as experts suggest it’s something lawmakers could do to help consumers.
“Is Donald Trump promoting that? Why isn’t Donald Trump providing a federal gas tax holiday?” the governor said when KCRA 3 asked him if he would consider the holiday.
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With high gas prices & strained supply, Gov. Newsom says he has no regrets with his approach to oil and gas industry in California.
“Quite the contrary.. it’s Donald Trump’s fault.”
I also asked about a gas tax holiday. It’s a no (again).
“Is Donald Trump promoting that?” pic.twitter.com/nXP5IhTHCx
— Ashley Zavala (@ZavalaA) May 8, 2026
The gas tax suspension was discussed at a hearing at the state capitol earlier this week on oil and gas supply uncertainty that included lawmakers, energy officials within the Newsom administration, economists and other experts.
California is grappling with a combination of a dwindling set of systems that help provide oil and gas in the state, heavy reliance on foreign fuel and the war in Iran that experts say makes the problem much worse and costs more expensive.
| MORE | California diesel prices hit $7.49 as school districts scramble to adjust budgets
As of Friday, the average price of a gallon of gas in California was $6.16. Nationwide, the average price of a regular gallon of gas $4.54 a gallon.
At the hearing Tuesday, all sides acknowledged the biggest difference between the gas prices in California and the rest of the nation are related to the state’s environmental-related regulations, taxes and fees.
Severin Borenstein, an economist with UC Berkely Haas, floated the idea to lawmakers at the hearing. He also suggested lawmakers could change the tax so that it rises when crude oil prices are low and drops when oil prices are high.
“There’s no question it could help consumers,” he said.
California is relying more than ever on foreign fuel. State data shows nearly a third of its foreign crude oil supply comes from countries that require the product to be shipped through the Strait of Hormuz.
Two refineries shut down within the last six months as California leaders and regulators updated clean air standards and added new rules for the oil and gas industry related to product reserves and company profits. The state has been working to end its reliance on oil and gas by 2045, a deadline that’s in state law.
The latest state data shows nearly 90% of registered cars in the state still rely on gas.
When KCRA 3 asked the governor if he had any regrets or remorse about his approach to the oil and gas industry in his two terms as governor, he said, “no, quite the contrary.”
“I’m proud of our leadership and our competitiveness,” he said.
See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel