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Trump weighs state fuel tax cap to drive down prices at the pump: report
U.S. Energy Secretary Christopher Wright discusses President Donald Trump’s energy agenda as America’s oil supply continues to grow on ‘Mornings with Maria.’
President Donald Trump is reportedly thinking about a state fuel tax cap — a move he argues could ease the pain for California drivers and see motorists pay 40% less at the pump.
“Gasoline in California could be $2.50,” Trump reportedly said during an interview with The California Post.
“We’ll do that. I would cap it. It’s unfair,” the president reportedly added. It’s unclear if Trump would pursue the cap through an executive order or by supporting legislation in Congress.
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President Donald Trump attends the signing ceremony of the Peace Charter for Gaza as part of the World Economic Forum in Davos, Switzerland, on Jan. 22, 2026. ( Harun Ozalp/Anadolu via / Getty Images)
Californians face the highest state fuel tax in the U.S., according to U.S. Energy Information Administration figures last updated in July 2025.
And Golden State drivers are facing high prices at the pump. As of Jan. 27, the AAA national average for a galloon of regular gas is $2.888, while the state gas price average for California is a whopping $4.253.
“You know, [in] Alabama, we have a lot of them that are right around $2, nobody can believe it. We’re drilling like crazy,” the president reportedly said in the Oval Office last week.
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An SUV is filled up with unleaded gas at a station on Nov. 29, 2025, in Hillsborough, North Carolina. (Al Drago/Getty Images / Getty Images)
“We’re drilling more oil today than we’ve ever drilled before, and all the other states are taking advantage of it, but California, every time the price goes down, they just raise it, they just get more taxes,” Trump said, according to the report.
Under state law, California’s state fuel tax increases each year on the first of July to adjust for inflation, according to the outlet.
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President Donald Trump during a meeting with oil executives in the East Room of the White House on Jan. 9, 2026. (Bonnie Cash/UPI/Bloomberg via / Getty Images)
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“It’s not the oil, it’s not the gasoline. It just goes down and they — I’ve never seen anything like it — they just raise the price. So it stays the same. So people say, ‘Oh, gee, gasoline is expensive.’ Most people don’t know. It’s a shame,” Trump said, according to the report.
