Gas prices: Newsom proposes California tax rebate for drivers facing highest costs in nation

California Gov. Gavin Newsom proposed giving state residents some relief in the form of a tax rebate, as rising energy costs have led to the Golden State having the highest gas prices in the nation.

According to AAA, the average price of regular unleaded gas in California as of Wednesday morning was $5.57 per gallon.

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"In January we proposed a pause to the gas tax increase. Now it’s clear we have to go farther," Newsom said Tuesday in his State of the State address. "And that’s why working with legislative leadership I’ll be submitting a proposal to put money back in the pockets of Californians to address rising gas prices."

Gas prices have been skyrocketing in recent weeks, and President Biden has warned that they could continue to climb after the U.S. banned purchases of oil from Russia.

Newsom did not go into detail of what his proposal would be, but senior adviser Dee Dee Myers said it would be a rebate that could total billions of dollars. The rebate would be limited to those who have cars and reside in California, Myers said. According to local KCRA it would include illegal immigrants living in the state.

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Republicans and some Democrats are calling for the U.S. to tap into its own fossil fuel resources to increase domestic production and reduce costs, but Newsom rejected that approach citing climate concerns.

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"At a time when we've been heating and burning up, one thing we cannot do is repeat the mistakes of the past by embracing polluters, drilling even more oil, which only leads to even more extreme weather, more extreme drought, and more wildfire," Newsom said.