California continues to have the highest energy prices in the United States, with residents facing steep gasoline and electricity costs, according to an April 8 press release. The statement says these high prices are a result of policy decisions that have limited local energy production and increased reliance on foreign oil.
The rising cost of energy in California affects household budgets and is said to impact national security due to greater dependence on imported crude. The press release states that Californians pay the highest gasoline taxes and fees in the country, totaling 70.9 cents per gallon—more than twice the national average. Electricity rates for households have also surged, reaching 30.29 cents per kilowatt-hour compared to a national average of 17.45 cents.
A study from U.C. Berkeley found that California has the highest adjusted poverty rate nationwide, which it attributes in part to state policies leading to a higher cost of living. State-specific costs make up more than half of every gallon of gasoline sold in California, as reported by CBS News in 2026.
In addition, refinery closures are contributing further supply constraints. The number of operating refineries has dropped from 23 in 2000 to just 12 currently, with another expected closure by May this year following new restrictions imposed by state authorities.
The press release claims that aggressive climate policies have accelerated residential electricity rate increases—a finding supported by a January 2025 report from the California Legislative Analyst’s Office—and notes that states with similar policies face electricity prices about fifty percent higher than other states.
Federal efforts are underway nationwide aimed at improving resilience and reducing utility bills through updated building codes according to the Department of Energy. The Department also announced programs supporting clean vehicle technologies with $96 million allocated for innovation and accessibility initiatives.
Other federal actions include launching over one hundred forty programs under President Biden’s Justice40 Initiative designed so that forty percent of investments benefit disadvantaged communities according to DOE. There is ongoing work at national laboratories focused on technology development for environmental management missions as highlighted by DOE officials, as well as projects using passive energy processes for groundwater cleanup at sites like Savannah River reported by DOE’s Office of Environmental Management.
According to the press release, President Trump has taken steps intended to increase domestic oil production within California after years of decline attributed largely to state regulations. On March 13, Secretary of Energy Chris Wright directed Sable Offshore Corp. to restore operations at Santa Ynez Unit and Pipeline System due to supply disruption risks; this move reportedly resulted in a fifteen percent increase in-state oil output.
