Full Breakdown
Rising U.S. Gas Prices Spur a Nationwide Debate Over Tax Suspensions
5/20/2026, 8:32:55 PM
The Surge in Pump Prices
Nationally, the average price per gallon has climbed to more than $4.50, a 50 % increase since the United States and Israel began the war with Iran, according to AAA data cited by NBC News. In California, drivers are paying $6.15 per gallon, the highest in the country, while Forbes Advisor reports a $2.83 national average in a separate snapshot. The disparity underscores how regional factors and reporting dates affect price figures, but all sources agree that pump costs are at historic highs.
Drivers Behind the Spike
Multiple forces converge on the price curve:
- Global oil market shock – Iran’s retaliation in the Strait of Hormuz has cut off roughly 20 % of world oil shipments, inflating crude prices.
- Refinery constraints – outages and maintenance, especially in California, quickly lift local prices.
- State-specific fuel blends – California’s cleaner-burning gasoline formula raises production costs and limits sourcing options.
- Taxes and environmental fees – Federal gas tax ($0.18/gal), California’s $0.79 fuel tax, and New York’s roughly $0.70 combined state and local taxes add directly to the pump price.
- Supply-chain bottlenecks – Limited interstate pipelines and reliance on marine imports make California’s market especially vulnerable.
Political Push for Tax Relief
Legislators at state and federal levels are proposing temporary tax suspensions to blunt the impact on consumers. In California, Senate Bill 1035—which would have suspended the state fuel tax—failed to advance, prompting Senator Tony Strickland (R-Huntington Beach) to criticize Senate Democrats. In New York, Republican congressional candidate Virginia McIntyre called for an immediate halt to the federal 18.5-cent tax, while Assembly challenger Tracy Diflorio urged a 90-day state tax pause. Former Rep. Joe Morelle (D-NY) noted that his 2022 sponsorship of a federal tax suspension was rebuffed, and State Senator Jeremy Cooney (D-NY) linked the price surge to “war-hawk decisions” from the Trump administration. Governor Kathy Hochul has signaled openness to a state-level suspension.
Official Statements & Responses
- Strickland framed the tax debate as a missed opportunity for “much-needed financial relief.”
- McIntyre argued that the government should not “profit off the pain of the people.”
- Morelle emphasized the need for “long-term solutions” rather than short-term fixes.
- Cooney attributed the spike to federal policy choices and pledged support for any relief measure.
- The California Energy Commission’s neutral analysis, referenced by Streetsblog, attributes price pressure primarily to global oil market dynamics rather than tax policy alone.
Criticism & Opposition
Opponents warn that suspending fuel taxes would erode funding for road maintenance, bridge repairs, public transit, and greenhouse-gas mitigation programs. States such as Utah, Indiana, and Georgia have offset reduced tax revenue with general-fund surpluses, but the fiscal impact remains a concern for policymakers elsewhere.
On-the-Ground Reactions
Drivers interviewed by News10 NBC expressed frustration: “I’m paying a lot more to get where I’m going,” one commuter said while filling up at a local station.
Conflicting Reports & Gaps
Verbatim Quotes
- “At a time when affordability is the top concern for families, Senate Democrats said ‘Hell no’ to much-needed financial relief.” — Senator Tony Strickland, R-CA
- “Joe Morelle, says the government should not be profiting off the pain of the people.” — Virginia McIntyre, Republican candidate for NY-01
- “In a statement, NYS Senator Jeremy Cooney says, “the reason gas prices have skyrocketed is because of war hawk decisions coming out of the Trump White House that are making New Yorkers suffer.” — Senator Jeremy Cooney, D-NY
What’s Next
Congress may consider a federal “gas tax holiday” if bipartisan support materializes, while New York and other states weigh 90-day suspension bills. Simultaneously, the California Energy Commission plans to release a detailed report on price drivers, which could shape future legislative action.