An influential oil industry trade association has lit a flame underneath Gov. Gavin Newsom for blaming soaring gas prices solely on the Trump Administration’s war in Iran.
Newsom’s bombastic social media office blasted the president for giving a “$10 billion higher gas bill for Americans” – with the usual cheers squad lining up to praise his claims.
However, the US Oil & Gas Association wasn’t shy about wagging the finger back at Newsom and California with some hard out stats — all while ribbing the governor and his cheer squad as being a ”DollarTree PeeWee and his Playhouse friends.”
“Since Jan 2025, Californians have shelled out an estimated $24 – 30 billion extra on gasoline compared to the U.S. average,” the association pointed out in an X response.
”Average premium: $1.30–$2.00/gal (taxes + regs + supply issues). Per driver: $600–$900+ more in just 15 months.”
The increased gas costs largely come from the Iran war’s effect on global oil prices, but California’s climate policies, and higher-than-average taxes also contribute to the high cost. AP The association is a major political advocate for the oil and gas industry, and says its mission is to educate “the public, policymakers, and legislators at the federal state and local levels about the value of domestic oil and natural gas exploration and production to enhancing national security and economic vitality.”
This major oil group lit a flame underneath Gov. Gavin Newsom for blaming the Trump administration as Americans suffer high gas prices. REUTERS One California gas station in the tiny Big Sur hamlet of Gorda‑by‑the‑Sea was charging nearly $10 a gallon for regular gas this week – and such was demand during Spring Break, ”they could have charged $20”, tourists said.
The news comes as the average price of a gallon of regular gas in California surged to $5.915 on Saturday, well above the national average of $4.104, according to American Automobile Association.
Drivers pay a “California premium” loaded with higher-than-average state excise and sales taxes, as well hefty fees for climate programs unique to the state.
California also requires an eco-friendly more costly fuel blend designed to prevent pollution.
“There are six different taxes or fees on each gallon. By contrast, the federal tax is eighteen cents,” Tim Stewart, president of the US Oil & Gas Association, previously told The California Post. “So California’s taxes and fees are 10 times those of the federal government’s tax.”
Last month, oil giant Chevron warned in a doomsday letter to Gov. Gavin Newsom that California will face economic collapse under his “misguided” climate policies.
State lawmakers have also warned that Newsom’s green agenda risks sending the price of gas above $8 a gallon – potentially returning drivers to fuel rationing not seen since the 1970s.
The increased gas costs largely come from the Iran war’s effect on global oil prices, but California’s climate policies, and higher-than-average taxes also contribute to the high cost.
The oil and gas association also questioned whether outside groups should seize “control of CA refineries and regulations as a viable option to fix the problem California has created for the rest of the economy.”
Republican gubernatorial candidate Steve Hilton claims drivers could be offered immediate relief if California followed Australia’s lead and slashed fuel taxes.
Australia announced it will temporarily halve its fuel excise tax from April to June, a move expected to save drivers about $13 on a 17-gallon tank.
Hilton argues California Gov. Gavin Newsom should adopt a similar approach, accusing him of ignoring the financial strain on working families.
The California Post reached out to Newsom’s office for comment.
