California Democrat Gubernatorial Candidate Matt Mahan Echoes GOP Call for Gas Tax Holiday as Prices Surge Toward $7

California Democratic gubernatorial candidate Matt Mahan is drawing attention after calling for a temporary suspension of the state’s gasoline taxes — a proposal long championed by Republican lawmakers — as fuel prices spike amid global turmoil tied to the conflict between the United States and Iran.

In a recent post on social media, Mahan warned that gasoline prices in California could climb as high as $7 per gallon and urged state leaders to suspend the state’s gas taxes to provide relief to motorists.

“Some experts say gas prices could go to $7 per gallon,” Mahan wrote. “That’s why we need a temporary suspension of our state’s gas taxes, which are the highest in the nation.”

The proposal mirrors a series of Republican efforts over the past several years to temporarily suspend California’s gasoline taxes during price spikes. GOP lawmakers have frequently argued that California’s fuel costs — among the highest in the United States — are driven in part by state taxes and environmental regulations.

Critics of Mahan say the position aligns closely with conservative talking points and reinforces claims from some Democrats that the San Jose mayor has adopted positions more commonly associated with Republican policy agendas. Mahan has been accused of disguising his Republican leanings, which included his 2024 advocacy of Proposition 36.

California Republicans have repeatedly promoted gas tax holidays during price surges, arguing that the state could use surplus funds to offset lost revenue for transportation programs.

Previous Republican proposals for a gas tax suspension include:

• 2022 — Assembly Bill 1638: Introduced by then-Assemblyman Kevin Kiley, the bill sought to suspend California’s gasoline excise tax for six months. The Democratic-controlled legislature ultimately rejected the proposal.
• 2023–2024 — Senate Republican Caucus initiative: Led in part by Janet Nguyen, Republican senators pushed proposals to suspend gas taxes and fees for one year to offset rising pump prices.
• 2026 — Senate Bill 1035: Introduced by Tony Strickland, the measure proposed suspending the state gas tax and certain fuel regulations for one year, with supporters claiming it could reduce prices by more than $1 per gallon.

Republicans in Congress representing California have also pushed similar arguments. In 2025, David Valadao led a group of GOP members of the state’s congressional delegation urging federal and state leaders to pause fuel tax increases and reconsider regulatory policies affecting gasoline production.

Mahan’s embrace of the idea comes as gasoline prices climb amid instability in global oil markets linked to the widening conflict with Iran during Donald Trump’s administration. Rising crude prices have pushed retail gasoline prices higher across the United States, with California typically experiencing the highest costs due to taxes, environmental standards, and refinery constraints.

Supporters of a tax suspension argue that eliminating the state gasoline excise tax — currently about 60 cents per gallon — could provide immediate relief for drivers struggling with inflation and commuting costs.

Critics, however, say suspending the tax would reduce funding for road maintenance and transportation infrastructure while offering only temporary relief if global oil prices continue to rise.

Whether Mahan’s proposal gains traction remains uncertain. California Democrats have historically rejected gas tax holidays, arguing they undermine transportation funding and provide limited long-term benefit.

Still, the San Jose mayor’s call highlights the growing political pressure on state leaders as gasoline prices climb and voters increasingly blame government policy for the rising cost of living.