Trump To SLASH Pump Prices 40%

Gas station pumps for diesel, plus, and regular fuel.

President Trump vows to cap California’s exorbitant state gas tax, promising to slash pump prices by 40% to $2.50 a gallon and deliver long-overdue relief to hardworking drivers crushed by Democrat mismanagement.

Story Highlights

Trump considers federal cap on California’s 71-cent/gallon excise tax plus fees totaling $1.44/gallon, the highest in the nation.
California gas averages $4.253/gallon versus $2.888 nationally, despite U.S. oil production surges under Trump’s “drill, baby, drill” policies.
Proposal targets state policies that auto-increase taxes with inflation and block market relief for families.
Governor Newsom pushes EV mandates and mileage taxes (2.3 cents/mile by 2027) as gas tax revenue shrinks.
Potential executive order or legislation faces lawsuits from Newsom and AG Bonta, heightening federal-state tensions.

Trump’s Bold Proposal Targets California Taxes

President Donald Trump revealed in a January 2026 interview with The California Post his plan to cap California’s state fuel tax. Current prices stand at $4.253 per gallon in California, compared to the national average of $2.888. Trump aims for $2.50 per gallon, a 40% reduction. He criticized state taxes totaling about $1.44 per gallon that prevent drivers from benefiting from increased U.S. oil production. This move aligns with Trump’s energy independence agenda, delivering tangible relief to overtaxed families frustrated by Sacramento’s failures.

California’s Tax Burden and Failed Infrastructure

California imposes the nation’s highest gasoline excise tax at 71 cents per gallon, per U.S. Energy Information Administration data. State law automatically raises this tax each July 1 for inflation, despite a $325 billion budget yielding crumbling roads. Combined fees reach $1.44 per gallon, funding 80% of road costs yet producing poor outcomes. National prices dropped to $2.41-$2.56 in states like Texas due to Trump’s drilling surge, but California taxes offset gains, punishing commuters and low-income drivers.

California holds the fifth-largest U.S. oil reserves but imports 67% of its needs due to regulatory barriers. This reliance heightens vulnerability to projected refinery closures in 2027-2028. Trump’s proposal counters these self-inflicted wounds, promoting in-state production over foreign dependence that weakens national security and burdens neighboring states like Nevada and Arizona.

Stakeholders Clash Over Federal Intervention

President Trump leads the push, leveraging federal authority through potential executive order or legislation against California’s Democratic stronghold. Governor Gavin Newsom defends taxes for infrastructure and EV shifts, filing his 55th lawsuit against Trump policies, including interstate pipelines. Attorney General Rob Bonta echoes this resistance. California drivers, facing 47% higher prices, seek relief without state retaliation. Oil executives back the cap to sustain refineries and boost production.

Power dynamics pit Trump’s GOP congressional majorities against Senate hurdles requiring 60 votes. Energy expert Professor John Mische calls state policies failed, urging pipelines and drilling over lawsuits he deems desperate. This standoff underscores limited government principles, protecting individual wallets from overreach.

Impacts and Expert Warnings on EV Taxes

Short-term, a cap saves drivers $1.44 per gallon, easing household budgets amid inflation scars from past fiscal mismanagement. Long-term, it averts refinery closures and bolsters U.S. energy security, clashing with California’s 2045 carbon neutrality push. Rural and low-income communities face hardest hits from Newsom’s mileage tax pilots at 2.3 cents per mile for EVs starting July 2027, equating to $44 monthly for average drivers.

Experts warn mileage fees will escalate like gas taxes, replacing one burden with another under green agendas. Pro-Trump voices hail the cap as overdue victory for common-sense energy policy. California advocates claim equity for 10,000 miles yearly but ignore poor road returns. Political tensions rise, with Trump’s action signaling GOP wins against globalist overreach.