Sacramento, CA – Following President Trump’s announcement this Monday supporting a suspension of the federal gas tax, the California Fuels & Convenience Alliance (CFCA) is calling on California’s policymakers to pursue similar action by suspending the state’s excise tax on gasoline and diesel, which currently adds 61 cents to every gallon of gas and 46 cents to every gallon of diesel purchased by Californians.

“This is about affordability and economic survival for millions of Californians,” said Elizabeth Graham, CEO of the California Fuels & Convenience Alliance. “Providing immediate relief at the pump is a bipartisan issue that must take priority, because Californians and California businesses desperately need help now.”

California is historically known to have the highest gas prices in the nation, due to a combination of unique fuel requirements, high taxes and regulatory costs, limited refining capacity, and supply constraints that have made the state a “fuel island” largely dependent on its few remaining refineries and imported crude oil.

As of March 2026, approximately $1.38 per gallon of gasoline in California is attributed to state and federal taxes and fees, while California’s special CARBOB fuel blend and strict regulatory programs further increase production costs. Recent events, including volatility stemming from the Iran War and the loss of the Phillips 66 Wilmington refinery and the Valero Benicia refinery in the last six months, have only exacerbated California’s fuel supply challenges, placing additional upward pressure on prices at the pump.

At a time when Californians are already struggling with rising costs, CFCA strongly urges California policymakers to suspend the state gas tax to prioritize providing immediate and meaningful relief to families, commuters, and businesses across the state.