Want Lower Gas Prices? Pause Governor’s New Gas Tax, State Regulators Say
Governor Newsom asked energy regulators how to reduce gas prices. They recommended pausing Newsom’s laws, which he promised would reduce gas prices.
(Sacramento, CA) June 30, 2025 – In response to a letter from Governor Gavin Newsom asking how to reduce gas prices, the California Energy Commission recommended pausing a new oil tax that the Governor had insisted would lower prices.
"Whether we are talking about new tariffs from the White House or new taxes from Sacramento, the result is higher prices Californians cannot afford. We have a real affordability crisis in California. The last thing people need is the government making things even worse," said Dr. Jasmeet Bains (D-Delano).
Governor Newsom called for two special sessions of the Legislature in 2023 and 2024 to address high gas prices, which resulted in the passage of two bills championed by the Governor – SB X1-2 and AB X2-1.
The Governor said SB X1-2 would prove that high gas prices were the result of price gouging and market manipulation by oil companies. Despite no evidence emerging to support the Governor's accusations, he followed up the next year by jamming through AB X2-1, which created a new tax on oil companies that he claimed would lower gas prices.
"Does it really take an entire state agency and 24 months to figure out that taxes make things more expensive?" said Dr. Bains, who was the only Democrat in the Legislature to oppose both measures.
The California Energy Commission is tasked with implementing the Governor's new tax on oil companies and had been developing accompanying regulations as two major refineries announced imminent plans to close, cutting production by up to 20% and resulting in estimates that gas prices could reach $8 per gallon.
The announcement came the same week the California Air Resources Board (CARB) is implementing its controversial update to the Low Carbon Fuel Standard (LCFS), which is expected to increase gas prices by as much as 46 cents per gallon.
Dr. Bains called for the head of CARB to resign last month following surprise testimony that CARB failed to analyze the impact the new regulations would have on gas prices before voting to approve them.
"The President promised he wouldn't cut Medicaid. The Governor promised he'd lower gas prices. It doesn't matter which party you're in because right now we are all getting screwed. California is healthier when families can afford food, gas, and healthcare. That's what I'll continue to fight for, whether I have to fight Democrats or Republicans to do it," said Dr. Bains.
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Dr. Jasmeet Bains represents the 35th Assembly District in Kern County, including the cities of Bakersfield, Delano, Wasco, Arvin, Shafter, and McFarland.