California Governor’s Race Amid Iran War Fuels Gas Price Debate
SACRAMENTO — As gas prices surge in California and nationally due to the ongoing war in Iran, several candidates for California governor are proposing measures to alleviate the financial burden on consumers. The debate centers on temporarily suspending the state’s gas tax or easing refinery regulations.
Candidates Propose Relief Measures
San Jose Mayor Matt Mahan, a Democrat, has called for state lawmakers to suspend California’s gas tax, currently the highest in the nation at 61 cents per gallon. He stated the costs are “becoming an emergency for working families, and I consider we ought to act like it.” [1]
Former Los Angeles Mayor Antonio Villaraigosa, also a Democrat, has proposed an “immediate moratorium” on regulations he believes “overburden” California refineries. He argues these policies force the state to rely on imported foreign oil.
On the Republican side, Steve Hilton, a GOP candidate and former Fox News host, has outlined a plan to lower gas prices to $3 per gallon by slashing regulations, including the low-carbon fuel standard. Riverside Sheriff Chad Bianco supports suspending the gas tax.
California’s Unique Gas Price Challenges
According to AAA, the average price for a gallon of regular gasoline in California on Monday was $5.52, the highest in the nation and more than 50 cents higher than any other state. The national average was $3.71, up from $2.92 the previous month.
California’s high gas prices are attributed to several factors, including environmental rules requiring a unique blend of cleaner-burning fuel. The state also relies heavily on imported crude oil. In 2025, 61% of oil processed in California refineries was imported, compared to 23% produced in-state, according to the California Energy Commission.
This reliance on foreign oil makes California vulnerable to price spikes during global conflicts, such as the current war in Iran.
Historical Context and Previous Responses
The current price spike echoes the situation in 2022 following Russia’s invasion of Ukraine. While prices eventually fell nationally, they remained high in California, prompting Governor Gavin Newsom to accuse oil companies of price-gouging and support legislation requiring transparency in profit margins and fuel supply.
Newsom scaled back his efforts after two refineries announced closures and later signed legislation permitting 2,000 new oil wells in Kern County.
In 2022, Republican state lawmakers proposed a temporary suspension of the gas tax, but the effort was rejected by Newsom and Democrats, who instead approved $9.5 billion in tax refunds.
Senate Bill 1, passed in 2017, increased the state’s gas tax to fund road and bridge repairs. The tax increases annually based on the California Consumer Price Index.
Public Opinion and Legislative Obstacles
A Public Policy Institute of California survey in August revealed that while over 60% of Californians support goals to reduce greenhouse gas emissions and promote renewable energy, a majority also view gasoline and utility costs as a major personal problem.
Despite calls for relief, Democratic lawmakers, holding supermajorities in the state Senate and Assembly, have largely resisted proposals to pause the gas tax. Assemblymember Cottie Petrie-Norris (D-Irvine) emphasized the need to balance affordability, clean air, and safe roads, stating, “If anyone has a proposal about how to backfill (transportation) revenues, I’m up for that conversation, but so far, it’s just a bulls— political talking point.”
Mahan countered that California’s high taxes and $350-billion budget should allow for temporary relief without jeopardizing infrastructure funding. He proposed suspending the fuel tax “for the duration of the war” in Iran or as long as gas prices remain above $5 a gallon.
Villaraigosa has pledged to “reform and overhaul” the California Air Resources Board, arguing that its regulations are harmful to the economy and residents.