A California bill that would have paused the state’s 61-cent-per-gallon gas tax for one year has failed to clear a state legislative committee, leaving drivers with no immediate relief as gas prices remain among the highest in the nation.
Assembly Bill 1745, introduced by Assemblyman Jeff Gonzalez, would have required oil companies to pass the tax savings directly to drivers and mandated that fuel receipts show how much customers saved. The bill also called for full transparency at the pump.
California’s average gas price hit $5.52 per gallon as of Monday, according to AAA — the highest in the nation and more than 50 cents above the next most expensive state. The national average stands at $3.71, up sharply from $2.92 just one month earlier. Analysts link the spike largely to the ongoing war in Iran, which has disrupted global oil markets.
Assemblymember Cottie Petrie-Norris (D-Irvine), who chairs the Assembly Utilities and Energy Committee, pushed back on the gas tax suspension idea. “If anyone has a proposal about how to backfill revenues, I’m up for that conversation, but so far, it’s just a bulls— political talking point,” she said. Petrie-Norris has led legislative efforts to stabilize California’s fuel market without rolling back the state’s climate goals.
The 61-cent gas tax, currently the highest in the country, funds road maintenance and infrastructure. Lawmakers opposing the suspension argue the state can’t afford to lose that revenue. Democratic lawmakers, who hold supermajorities in both the state Senate and Assembly, have repeatedly blocked efforts to pause the tax.
The bill’s failure comes as the gas tax debate has become a flashpoint in the race for California governor. San Jose Mayor Matt Mahan, a moderate Democrat running for governor, has called for suspending the tax “for the duration of the war” in Iran or “as long as gas prices are over $5 a gallon.” “The truth is we have the highest taxes in the country and a $350-billion budget, and we ought to be able to pave our roads and enable working families to put food on the table,” Mahan said.
Former Los Angeles Mayor Antonio Villaraigosa, also a Democratic gubernatorial candidate, has called for an “immediate moratorium” on regulations he says are “overburdening” California refineries and working families. “These failed policies are not only hurting tens of millions of Californians, they are terrible for the environment because they have forced California to depend on imported foreign oil from the Middle East,” Villaraigosa said in a statement.
State Sen. Tony Strickland (R-Huntington Beach) has introduced Senate Bill 1035, which also seeks to suspend the gas tax and ease other fuel-related regulations. GOP gubernatorial candidate Steve Hilton, a former Fox News host, has outlined a plan to bring California gas prices down to $3 per gallon by eliminating the state’s low-carbon fuel standard. Riverside County Sheriff Chad Bianco, the other major Republican in the governor’s race, also supports suspending the gas tax.
A separate but related bill, Assembly Bill 1421, introduced by Assemblymember Lori Wilson, would extend research into a Road User Charge system — a model where drivers pay based on miles traveled rather than fuel purchased. That bill would require a technical advisory committee to continue its work until 2035 and calls for a report by 2027 examining how the system would affect low-income and rural drivers.
With the governor’s race heating up and gas prices showing no signs of immediate relief, the debate over California’s gas tax is expected to remain a central issue in the months ahead. Senate Bill 1035 and other related proposals are still pending in the legislature.
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