Oil group slams Newsom over gas prices, says Californians shelled out ‘$24–30B extra on gasoline’

SACRAMENTO, CALIFORNIA: A sharp exchange has erupted over rising gas prices, with the US Oil & Gas Association pushing back against Governor Gavin Newsom after his office blamed the Trump administration for higher fuel costs.

The back-and-forth comes as Californians continue to pay some of the highest gas prices in the country.

Oil group blames California policies for rising gas prices

The tension escalated after Newsom’s office claimed Americans were facing a “$10 billion higher gas bill,” pointing fingers at federal leadership.

But the US Oil & Gas Association quickly responded, turning the spotlight back on California’s policies.

“DollarTree PeeWee and his Playhouse friends have entered the Chat,” the group said, taking a jab at the governor while addressing the issue.

The association argued that California’s own policies have played a major role in driving up costs for residents. It pointed to higher taxes, strict regulations, and supply challenges as key reasons behind the price gap.

“Since Jan 2025, Californians have shelled out an estimated $24–30 billion extra on gasoline since compared to the US average. Average premium: $1.30–$2.00/gal (taxes + regs + supply issues). Per driver: $600–$900+ more in just 15 months,” the group added.

The numbers highlight the growing frustration among drivers in the state, many of whom are paying significantly more than the national average.

California gas prices surge, remain among highest nationwide

Fuel costs in California have continued to climb, adding to the ongoing debate. As of Saturday, April 4, the average price for gas in the state reached $5.91 per gallon, according to AAA.

That figure is about $1.20 higher than it was just a month ago. It also stands roughly $1.80 above the national average, which is $4.10 per gallon.

In some areas, prices are even higher. One gas station in the small coastal community of Gorda-by-the-Sea is reportedly charging close to $10 per gallon for regular gas.

Global tensions and California policies drive fuel price surge

While the debate has turned political, the reasons behind the rising prices are not limited to one factor. The increase has largely been linked to the impact of the Iran war on global oil markets, which has pushed prices higher worldwide.

At the same time, California’s climate policies and higher-than-average taxes have also contributed to the situation.

The US Oil & Gas Association stressed that local decisions are a significant part of the problem, suggesting that the state’s approach to energy regulation is affecting affordability.

In its response, the association floated the idea of outside intervention in California’s energy system.

It questioned whether outside groups should take “control of CA refineries and regulations as a viable option to fix the problem California has created for the rest of the economy.”