FIRST ON FOX: California motorists are set to pay even more at the pump starting Wednesday as another gas tax increase takes effect, prompting some of the state’s Republican lawmakers to warn that added costs will further squeeze residents already shouldering some of the highest fuel prices in the nation.
California’s GOP congressional delegation, led by Rep. David Valadao, R-Calif., is urging Gov. Gavin Newsom, D-Calif., to suspend the planned 2.2-cent-per-gallon hike, which would raise the state’s excise gas tax to 63.4 cents per gallon.
The lawmakers say that figure doesn’t include the state’s sales tax and other local fees, bringing the total surcharge burden to about $1.15 per gallon at California pumps.
“According to AAA, the average price of gasoline in California is currently $5.58 per gallon—the highest in the nation and $1.65 above the national average,” the lawmakers wrote Friday in a letter sent to Newsom. “Instead of further unaffordable increases to California’s gasoline excise tax, we urge you to prioritize commonsense energy policies that will provide meaningful relief for all Californians.”
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Of the average $5.58 price per gallon cited by the lawmakers, about $4.43 reflects the cost of gasoline, with the rest going toward taxes and fees.
California GOP Reps. James Gallagher, Tom McClintock, Vince Fong, Jay Obernolte, Young Kim, Ken Calvert, Darrell Issa, and Kevin Kiley, I-Calif., also signed the letter.
Valadao has repeatedly urged Newsom to suspend California’s gasoline excise tax increases in recent years, which are indexed to inflation and rise annually.
The policy dates back to a 2017 California transportation law that raised the state’s fuel taxes to help fund road, highway and transit projects. Voters rejected a 2018 ballot measure to repeal the law, allowing the annual excise tax increases to remain in effect.
Newsom has balked at scrapping the fuel tax hikes, arguing a temporary gas tax holiday or repeal effort would jeopardize the state’s road repair programs, and he blamed President Donald Trump’s war against Iran for sending fuel prices higher. He has also dismissed the idea that suspension efforts would lead to lower prices at the pump.
“Repealing gas taxes wouldn’t lower prices at the pump — it would hand oil companies a massive tax break with no guarantee that a single cent would be passed on to drivers,” Newsom’s office wrote in a March press release.
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Republicans have sharply criticized Newsom for pursuing policies they argue have raised energy prices in the state, which in turn can make everyday life more expensive.
Two major California oil refineries operated by Valero and Phillips 66 closed down this year in part due to the adoption of stringent climate regulations and fuel standards that threatened the economic viability of their operations. Less fuel-making capacity means the state has to purchase more crude oil and gasoline outside California — often from abroad at a higher price.
Because California lacks pipeline connections to the major oil-producing parts of the country, it imports roughly three-fourths of its crude oil, while domestic production continues to decline. About one-third of those imported barrels come from the Middle East, leaving the state especially vulnerable to fuel price spikes as the war against Iran disrupted shipping through the Strait of Hormuz.
Chevron moved its headquarters to Houston in 2024 after operating for more than 140 years in the Golden State — a decision that was attributed to Texas’ more business-friendly corporate environment and California’s aggressive environmental policies that pushed fossil fuel companies out of the state.
Newsom has also backed a goal for California to halt all oil extraction in the state by 2045.
“California drivers pay almost $2 more per gallon than the national average, yet Governor Newsom continues to advance policies that will drive prices even higher,” Valadao said in a statement to Fox News Digital. “Central Valley families are already feeling the strain of California’s high cost of living, and they can’t afford to pay an extra 71 cents per gallon every time they fill up their tanks.”
“It’s past time for Sacramento to stop these harmful price hikes, prioritize domestic energy production, and ease the burden on hardworking Californians instead of adding to it,” he added.
A Fox News poll released earlier in June found that just 23% of voters approve of Trump’s handling of gas prices.
A spokesperson for Newsom did not immediately respond to a request for comment.