Fresno, Calif. – State lawmakers in California are considering a temporary suspension of the state’s gas tax as prices at the pump continue to climb, reaching an average of $4.63 per gallon statewide as of February 25, 2026, according to AAA. The proposal comes as drivers in the Central Valley face an average price of $4.47 a gallon, a 50-cent increase in the past month.
Republican lawmakers have introduced a bill that would pause the state gas tax for one year, potentially lowering prices by as much as 61 cents a gallon. The proposal hinges on securing support from Democrats to advance. “Driving isn’t optional. It’s essential,” one lawmaker stated at a news conference, emphasizing the importance of affordable transportation.
The increase in gas prices is attributed to a combination of seasonal trends and global factors, according to Patrick De Haan of GasBuddy. Geopolitical tensions, specifically those involving President Trump and Iran, are contributing to the upward pressure on oil prices. The implementation of California’s summer gasoline blend is also playing a role.
California consistently has the highest gas prices in the continental United States, exceeding the national average by more than a dollar per gallon. As of March 2025, California drivers paid $0.90 per gallon in state and local taxes, compared to a national average of $0.18 in federal taxes, according to the U.S. Energy Information Administration. California’s state excise tax, at $0.60 per gallon, is the highest in the nation.
Beyond taxes, environmental requirements add to the cost. The California Energy Commission estimates that environmental compliance costs added as much as $0.54 per gallon as of March 2025. These costs stem from programs like the Cap-and-Trade Program and the Low Carbon Fuel Standard.
Industry analysts predict that gas prices in Fresno could approach $5 a gallon, particularly if unexpected disruptions occur during refinery maintenance season. Californians are currently paying some of the highest gas prices in the country, and the situation is expected to worsen before improving, with prices typically peaking in April or May.
AAA data from February 25, 2026, shows California’s average prices at $4.634 for regular, $4.866 for mid-grade, $5.051 for premium, and $5.092 for diesel. Prices yesterday were $4.628, $4.856, $5.043, and $5.076 respectively. A week ago, the averages were $4.586, $4.816, $5.001, and $5.041.
