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Newsom again shuts down gas tax holiday amid skyrocketing fuel prices in California

Newsom dismisses a gas tax holiday as California drivers face near-record prices and pay 71 cents per gallon in state taxes alone.

Cali Reporter staff · May 8, 2026
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Newsom again shuts down gas tax holiday amid skyrocketing fuel prices in California
Newsom again shuts down gas tax holiday amid skyrocketing fuel prices in California

Gavin Newsom rejected another gas tax holiday on Friday even as California fuel prices climb toward records and approach seven dollars a gallon in places like Needles.

The governor deflected questions about easing the burden on drivers by asking why Donald Trump isn’t pushing a federal suspension. When pressed on whether he has any regrets about his two-term approach to the oil and gas industry, Newsom answered bluntly: “no, quite the contrary. I’m proud of our leadership and our competitiveness.”

That stance lands hard on Californians who now pay roughly 90 cents per gallon in combined state taxes, fees, and environmental program costs, four times the flat 18.4-cent federal tax. One commenter noted the price jump from three dollars to five dollars a gallon in recent months; another reported paying $7.29 in Needles before crossing into Arizona for $4.50.

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Other states are moving differently. Indiana’s governor paused sales and excise taxes on fuel, delivering a 60-cent-per-gallon reprieve. California, by contrast, maintains the highest total gas taxes in the country at about 71 cents per gallon from state-level charges alone.

Experts cited in the reporting say a holiday is one tool lawmakers could use to help consumers. Newsom’s office has shown no interest. Commenters on the story described the policy as deliberate “demand destruction,” a progressive outcome that keeps consumption in check while prices rise with summer driving season and global supply strains through the Strait of Hormuz.

The governor’s refusal leaves open the question of how much higher Californians must pay before Sacramento considers relief that other states have already delivered.

Original reporting: Freerepublic.com.

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