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Gas Is More Expensive Because of Taxes – Not Conspiracies

As gas prices continue climbing across the country amid rising tensions with Iran, Democrats are racing to blame President Donald Trump for the pain Americans are feeling at the pump. California Governor Gavin Newsom, Senate Democrats, and other blue-state leaders have all pointed to Trump’s military actions and Middle East instability as the primary cause of recent price spikes.

What many of them are leaving out, however, is a fairly inconvenient reality: Democratic-controlled states already impose some of the highest gas prices in America long before any overseas conflict enters the equation.

According to an analysis of AAA fuel data, drivers in Democrat-led states currently pay an average of 41 cents more per gallon than drivers in Republican-led states. Blue states average roughly $4.78 per gallon, compared to about $4.37 in red states.

And those higher prices are not temporary.

States such as California, Washington, Oregon, Illinois, and New York have spent years layering environmental mandates, carbon pricing systems, low-carbon fuel standards, cap-and-trade programs, and aggressive fuel regulations onto consumers and energy producers. Those costs inevitably get passed directly to drivers.

California remains the clearest example. Drivers there are currently paying around $6.14 per gallon, among the highest prices anywhere in the nation. The state’s fuel taxes alone exceed 70 cents per gallon, and California’s heavily regulated fuel blend requirements add even more cost.

Economist Severin Borenstein of UC Berkeley’s Haas School of Business Energy Institute has openly acknowledged that California gas prices sit more than $1.50 above the national average largely because of taxes, environmental fees, and state-specific fuel mandates.

California also requires the use of California Reformulated Gasoline, a specialized fuel blend designed to reduce emissions but significantly more expensive to refine and distribute.

Yet despite all of that, Newsom has aggressively blamed Trump for rising prices tied to Middle East instability and military tensions with Iran.

Earlier this year, Newsom claimed gas prices jumped 50 cents nationally after Trump escalated the conflict with Iran, calling it “the fastest spike at the pump in years.” He later argued Americans paid an extra $1.5 billion for fuel because of Trump’s “disastrous war with Iran.”

Democrats in other high-cost states have made similar arguments.

Washington Senator Patty Murray recently criticized the administration over surging energy prices while defending clean-energy programs and attacking Republican energy policies. What Murray did not mention is that Washington state itself imposes roughly 55 cents per gallon in gas taxes while also enforcing expensive fuel standards and environmental regulations that increase refining costs.

New York offers another major example.

Governor Kathy Hochul and prominent New York Democrats have repeatedly attacked Trump over fuel prices connected to the Iran conflict. But New York has also blocked major pipeline projects that could substantially reduce energy costs across the Northeast.

One such project was rejected amid concerns from progressive lawmakers over environmental justice, climate goals, and ecological impacts. Supporters of the pipeline argued it would have lowered natural gas costs and reduced reliance on expensive imported energy.

Instead, according to the American Energy Alliance, New Yorkers remain stuck paying elevated energy prices because regulatory restrictions continue preventing the expansion of domestic pipeline infrastructure.

Despite that, Hochul recently claimed, “War with Iran and tariffs are driving up gas prices across the state,” while Senate Minority Leader Chuck Schumer argued Americans are paying more than $4.50 per gallon because Trump “refuses to end this war.”

There is no question global instability can affect oil markets and temporarily push fuel prices higher. But the broader gap between blue-state and red-state energy costs existed long before the latest Middle East tensions.

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