Trump Considers Fuel Tax Cap to Lower Pump Prices: Latest 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 considering a state fuel tax cap, a strategy he believes could significantly alleviate the financial burden for California drivers. This initiative could potentially reduce gasoline prices by as much as 40% at the pump.
During an interview with The California Post, Trump stated, “Gasoline in California could be $2.50.” He emphasized, “We’ll do that. I would cap it. It’s unfair.” However, it remains uncertain whether he would implement this cap through an executive order or by backing legislation in Congress.
TRUMP’S FIRST YEAR BACK IN OFFICE SEES MAJOR OIL AND GAS PERMIT SURGE AMID ‘DRILL, BABY, DRILL’ PUSH
President Donald Trump attends the signing ceremony of the Peace Charter for Gaza as part of the 56th World Economic Forum in Davos, Switzerland, on Jan. 22, 2026. (Harun Ozalp/Anadolu via Getty Images / Getty Images)
According to the U.S. Energy Information Administration, Californians currently face the highest state fuel tax in the nation. As of January 27, the AAA national average for a gallon of regular gas is $2.888, while California’s average price stands at an astonishing $4.253.
Trump remarked, “You know, [in] Alabama, we have a lot of them that are right around $2, nobody can believe it. We’re drilling like crazy.” This statement highlights the disparity in fuel prices across states.
COSTCO QUIETLY BOOSTS GAS REWARDS FOR BRANDED CREDIT CARD HOLDERS TO 5% CASH BACK
An SUV is filled up with unleaded gas at a gas station on Nov. 29, 2025, in Hillsborough, N.C. (Al Drago/Getty Images / Getty Images)
Trump further criticized California’s approach, stating, “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.” This sentiment underscores the frustration many feel regarding the state’s fuel pricing policies.
Under California law, the state fuel tax is set to increase annually on July 1st to account for inflation, further complicating the situation for consumers.
TRUMP ANNOUNCES $100B OIL INVESTMENT PLAN FOR VENEZUELA FOLLOWING MADURO’S CAPTURE
President Donald Trump during a meeting with oil executives in the East Room of the White House in Washington, D.C., on Friday, Jan. 9, 2026. (Bonnie Cash/UPI/Bloomberg via Getty Images / Getty Images)
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Trump concluded by stating, “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.” This statement reflects the ongoing debate about fuel pricing and taxation in California.
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 considering a state fuel tax cap, a strategy he believes could significantly alleviate the financial burden for California drivers. This initiative could potentially reduce gasoline prices by as much as 40% at the pump.
During an interview with The California Post, Trump stated, “Gasoline in California could be $2.50.” He emphasized, “We’ll do that. I would cap it. It’s unfair.” However, it remains uncertain whether he would implement this cap through an executive order or by backing legislation in Congress.
TRUMP’S FIRST YEAR BACK IN OFFICE SEES MAJOR OIL AND GAS PERMIT SURGE AMID ‘DRILL, BABY, DRILL’ PUSH
President Donald Trump attends the signing ceremony of the Peace Charter for Gaza as part of the 56th World Economic Forum in Davos, Switzerland, on Jan. 22, 2026. (Harun Ozalp/Anadolu via Getty Images / Getty Images)
According to the U.S. Energy Information Administration, Californians currently face the highest state fuel tax in the nation. As of January 27, the AAA national average for a gallon of regular gas is $2.888, while California’s average price stands at an astonishing $4.253.
Trump remarked, “You know, [in] Alabama, we have a lot of them that are right around $2, nobody can believe it. We’re drilling like crazy.” This statement highlights the disparity in fuel prices across states.
COSTCO QUIETLY BOOSTS GAS REWARDS FOR BRANDED CREDIT CARD HOLDERS TO 5% CASH BACK
An SUV is filled up with unleaded gas at a gas station on Nov. 29, 2025, in Hillsborough, N.C. (Al Drago/Getty Images / Getty Images)
Trump further criticized California’s approach, stating, “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.” This sentiment underscores the frustration many feel regarding the state’s fuel pricing policies.
Under California law, the state fuel tax is set to increase annually on July 1st to account for inflation, further complicating the situation for consumers.
TRUMP ANNOUNCES $100B OIL INVESTMENT PLAN FOR VENEZUELA FOLLOWING MADURO’S CAPTURE
President Donald Trump during a meeting with oil executives in the East Room of the White House in Washington, D.C., on Friday, Jan. 9, 2026. (Bonnie Cash/UPI/Bloomberg via Getty Images / Getty Images)
CLICK HERE TO GET THE FOX NEWS APP
Trump concluded by stating, “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.” This statement reflects the ongoing debate about fuel pricing and taxation in California.
