California's gas prices, already the highest in the nation, have spiked further following the outbreak of war with Iran, sparking a political blame game between Governor Gavin Newsom and the Trump administration while also exposing divisions within the Democratic Party over the state's climate policies.
The price increases have hit drivers hard. At a Chevron station in San Jose this week, Kern Rikhi pulled up in his brand-new Mercedes SUV to find gas at $6 per gallon for regular and $6.39 for premium. "I didn't think about this last week when I was buying this car," he told KQED. Commuter Randall Raras said the costs are forcing him to be more deliberate about his travel: "It's actually making me, like, be more conscious on where I need to go more."
What the Left Is Saying
Governor Newsom has placed blame squarely on President Trump and the war in Iran, framing the price increases as a direct consequence of federal decisions. In recent statements, Newsom said: "We've seen gas prices spike because of his decision. Cause and effect."
But not all Democrats are defending the governor. A group of more than a dozen Democrats in the California State Legislature who voted to make the state's Cap-and-Invest program stricter are now calling on the Newsom administration to "reconsider" its implementation of the law, which adds about 25 cents per gallon to gas prices through charges on carbon polluters like oil refineries.
The criticism has spilled into California's governor's race. San Jose Mayor Matt Mahan, a Democrat running to succeed Newsom, said: "In a state that says it cares about working people and a party that says it cares about working people, we ought to show it." Mahan is also calling for the state to suspend its 61-cent-a-gallon gas tax to provide relief to struggling commuters.
Mahan argued drivers are being forced to choose between paying rent, buying food and filling up their tanks to get to work. The state's gas tax funds road repair, while Cap-and-Invest revenues fund wildfire risk mitigation and public transportation investments.
What the Right Is Saying
The Trump administration is pointing to California's own policies as a major contributor to high gas prices. Energy Secretary Chris Wright, appearing on NBC's "Meet the Press," announced he is ordering the resumption of offshore oil flows along the California coast, saying: "California has fought foolishly to prevent new American oil to go into their own state."
Wright declared "enough is enough" and said new oil production is coming on in California. This week, a Texas oil company announced it is resuming flows through a controversial California pipeline in response to the federal directive.
UC Berkeley professor Severin Borenstein, an energy economist, said producing more oil within California would not necessarily protect drivers from price increases: "Is not a protection against an increase in gasoline prices when the world price of crude goes up." He noted that the U.S. is a net exporter of petroleum, yet supply constraints from the Middle East have still driven up prices nationwide. "Whether you're selling oil in California or Texas, you charge a higher price when supply is restricted," Borenstein explained.
What the Numbers Show
According to AAA, California's average gas price stands at $5.50 per gallon, the highest in the nation and well above the national average.
The state's Cap-and-Trade program adds approximately 25 cents per gallon to gas prices, according to state officials. California's gas tax is 61 cents per gallon.
The Public Policy Institute of California conducted polling last year that found a majority of state residents support California's ambitious climate goals while also identifying gas prices as a major problem for their household finances.
The Cap-and-Invest program generates billions of dollars annually in revenue, which funds investments in wildfire risk mitigation and public transportation, according to the Energy Institute at Haas.
The Bottom Line
The gas price spike has revealed fractures within California's Democratic coalition, with some party members questioning whether the state's climate policies are compatible with economic affordability during an energy crisis. Meanwhile, the Trump administration is using the moment to push for increased domestic oil production, arguing California's regulatory environment has contributed to vulnerability in price shocks. Energy experts note that regardless of state-level production, global oil markets driven by Middle East supply disruptions have the largest impact on prices at the pump. With California's governor's race already underway, voters are likely to hear more debate over how to balance climate goals with cost-of-living concerns.