SACRAMENTO\u00a0\u2014\u00a0As gas prices surge in California and nationally due to the war in Iran, two Democrats running for California governor are calling for the state to temporarily suspend its fuel tax or ease refinery regulations in an effort to lower costs.<\/p>\n
Standing in front of a gas pump in a video posted to social media, San Jose Mayor Matt Mahan said the costs are \u201cbecoming an emergency for working families, and I think we ought to act like it.\u201d<\/p>\n
The moderate Democrat called on state lawmakers to suspend California\u2019s gas tax, which at 61 cents per gallon is the highest in the nation.<\/p>\n
Former Los Angeles Mayor Antonio Villaraigosa also called for an \u201cimmediate moratorium\u201d on regulations that he blamed for \u201coverburdening\u201d California refineries and working families.<\/p>\n
\u201cThese failed policies are not only hurting tens of millions of Californians, they are terrible for the environment because they have forced California to depend on imported foreign oil from the Middle East,\u201d Villaraigosa said in a statement.<\/p>\n
The cost of living in California, including the price at the pump, remains a pivotal issue for voters in the state, and has become central to the moderate-leaning campaigns of Mahan and Villaraigosa as they attempt to distinguish themselves in the tightly contested race for governor. <\/a> <\/p>\n According to AAA, the average price for a gallon of regular gasoline in California on Monday was $5.52, the highest in the nation and more than 50 cents higher than any other state. The national average was $3.71, up from the previous month\u2019s average of $2.92.<\/p>\n Gasoline prices in California are often among the highest in the country for a number of reasons, including environmental rules that require a unique blend of cleaner-burning fuel.<\/p>\n The state also relies mostly on crude oil imported from other countries including Brazil, Iraq and Guyana and processed at in-state refineries. In 2025, 61% of oil processed at California refineries was imported, compared with 23% that was produced in the state, according to data from the California Energy Commission.<\/p>\n A greater reliance on foreign oil has made California more susceptible to price spikes<\/a> during global conflicts and other disruptions.<\/p>\n Republicans have long supported suspending the gas tax and cutting regulations in order to lower prices at the pump.<\/p>\n Steve Hilton, a GOP candidate for governor and former Fox News host, outlined a plan to lower California gas prices to $3 per gallon by slashing regulations including the low-carbon fuel standard, the rule that requires cleaner-burning gas in order to reduce tailpipe emissions.<\/p>\n The other major Republican in the race, Riverside Sheriff Chad Bianco, supports suspending the gas tax, according to his website.<\/p>\n The current price spike echoes 2022, when Russia invaded Ukraine and disrupted global oil markets.<\/p>\n As prices eventually fell around the rest of the country that year, they remained high for months in California, leading Gov. Gavin Newsom to wage war against oil and gas companies. He accused them of price-gouging<\/a> drivers and backed laws requiring companies to report their profit margins and keep a supply of fuel on hand<\/a> to prevent shortages and price spikes.<\/p>\n The governor backed off his battle with the oil companies last year after two refineries announced plans to close. In September, he signed legislation to permit 2,000 new oil wells in Kern County, reflecting an acknowledgement that his war on oil companies threatened to send California\u2019s gas market spiraling.<\/p>\n Republican state lawmakers in 2022 pushed for a temporary suspension of California\u2019s excise tax on gasoline, arguing that it would provide immediate relief to California drivers. That effort was rebuffed by Newsom and Democratic lawmakers, but they later approved $9.5 billion in tax refunds<\/a> to Californians, providing as much as $1,050 to families as financial relief from record-high gasoline prices and other rising costs.<\/p>\n In 2017, the Democratic-controlled Legislature passed Senate Bill 1, which then-Gov. Jerry Brown signed into law, levying the state\u2019s first gas tax increase in 23 years to fix California\u2019s roads and bridges in disrepair. Under the law, the tax increases each year on July 1 based on the growth in the California Consumer Price Index.<\/p>\n