Trump’s Gas Price CUTS Stun California

Gas station pumps for diesel, plus, and regular fuel.

President Trump is floating a direct hit on California’s pump pain: a federal cap on the state fuel tax that could force Sacramento’s politicians to stop padding gas prices while families struggle.

Quick Take

Trump says he is considering capping California’s state fuel tax, arguing it could drop prices to about $2.50 per gallon.
California’s average gas price was reported at $4.253 per gallon versus a $2.888 national average, keeping Californians far above the rest of the country.
California’s fuel taxes and fees are among the highest in the nation, and the state’s tax rate rises automatically with inflation under state law.
How Trump would impose a cap remains unclear, and any move would likely trigger legal and political fights with Newsom’s administration and California Democrats.

Trump’s proposal targets the tax layer driving California’s price gap

President Donald Trump told The California Post that he is considering a cap on California’s state fuel tax, framing it as a fairness issue for drivers facing the nation’s most punishing pump prices. Trump said California gasoline “could be $2.50” and argued the state keeps prices elevated even when oil costs fall. Reported figures put California at $4.253 per gallon compared with a $2.888 national average.

The idea lands as Trump continues pressing an energy-first agenda designed to lower consumer costs through higher production. Supporters see the contrast clearly: prices are lower in many states as drilling expands, while California remains an outlier. The research does not confirm a specific legal pathway yet, and Trump has not publicly spelled out whether he would pursue legislation, a regulatory strategy, or some executive-branch approach to pressure changes.

California’s gas tax structure keeps rising—even when families can’t

California’s fuel tax has been a political flashpoint since the state raised it in 2017 for transportation projects, and the levy increases each July under an inflation adjustment written into state law. Research cited U.S. Energy Information Administration figures showing California’s state gas tax at roughly 71 cents per gallon (including fees), with broader layers of local taxes and fees pushing the total burden much higher.

That tax-heavy structure matters because it can blunt the impact of falling oil prices. Trump’s critique focuses on the state’s tendency to preserve revenue flows rather than allow market-driven relief at the pump. California leaders counter that these revenues fund roads and infrastructure, but the research points out persistent public frustration over road quality despite high collections and a state budget that has grown dramatically over time.

Energy policy conflict: production restrictions, imports, and refinery risk

California’s high prices are not just about taxation. Research indicates the state imports a large share of its oil—reported as 67%—despite significant reserves, while policy choices and permitting fights have constrained in-state production and pipeline capacity. That combination can make supply more fragile and expensive. The research also flagged looming refinery-closure threats in 2027–2028, a risk that could further tighten supply if it materializes.

Those pressures amplify the federal-state clash already underway. California Gov. Gavin Newsom and Attorney General Rob Bonta have repeatedly sued the Trump administration on energy-related disputes, including a reported 55th lawsuit tied to interstate crude pipeline permitting. If Trump attempts a tax cap that affects state revenue, the same playbook—court challenges and aggressive resistance—appears likely, though outcomes depend on legal authority and Congress.

EV mandates and a coming “road usage charge” add another cost fight

As California pushes harder toward electric vehicles, lawmakers are also planning for a future where gas-tax revenue falls. Research highlights a proposed “road usage charge” that would apply to EV drivers at 2.3 cents per mile starting in July 2027. Supporters argue it is a user-fee model for road maintenance, but the research warns the structure could steadily rise over time—mirroring the pattern Californians have seen with gas taxes.

For many working families, especially rural commuters and those driving longer distances, per-mile charges can become another form of regressive cost pressure. The research notes debates over credits or offsets for low-income residents, but details remain contested. Politically, the clash underscores a broader concern for many voters: Sacramento’s instinct to replace one revenue stream with another, rather than reduce spending or remove policy barriers that raise energy costs.

What happens next depends on legal authority, Congress, and California’s response

Trump’s comments signal intent but not a finished plan. Research indicates federal legislation could be possible yet faces hurdles, including Senate vote math and likely unified opposition from California’s Democratic leadership. An executive action could move faster but may face immediate litigation testing federal power versus state taxation authority. Until the mechanism is identified, the proposal remains a high-impact concept rather than an implemented policy.

Even so, the political stakes are obvious: if California gas prices remain far above the national average, pressure grows on state leaders who have defended higher taxes and tighter fossil-fuel rules. Trump is positioning himself as the counterweight—using federal leverage to try to force relief in a state where working people pay more and get lectured more. The research supports one certainty: any serious attempt to cap California’s fuel tax would ignite a major constitutional and political fight.