California Governor Gavin Newsom is taking a victory lap over falling gas prices, and he wants everyone to know his administration deserves the credit.

Credit Where Credit Is Due?

The governor's official press handle posted on X Monday, highlighting that California gas prices have dropped to their lowest point in nearly four years. The post credited two special legislative sessions Newsom called—one focused on transparency and accountability around price gouging, the other on ensuring fuel supplies could meet demand.

Those sessions led to actual legislation. California lawmakers passed measures that Newsom signed in March 2023 and October 2024, aimed at addressing the state's notoriously high gas prices.

The numbers back up the celebration, at least partially. Data from the American Automobile Association released January 8 shows California gas prices at $4.23 per gallon, the lowest since June 2021. Meanwhile, the U.S. Energy Information Administration reported January 7 that national gasoline consumption in 2025 decreased by less than 1% compared to 2024.

Enter Trump's Energy Agenda

The timing is interesting. President Donald Trump has revived his "drill baby, drill" mantra, pushing for aggressive domestic oil production. But experts say the reality is more complicated—oil prices aren't high enough to justify the kind of expansion Trump envisions, creating obstacles both domestically and internationally.

There's another wrinkle: Trump's military operation that resulted in the capture of Venezuelan leader Nicolás Maduro could potentially unlock access to Venezuela's oil reserves for American companies. Exxon Mobil Corp. (XOM) has already greenlit plans to evaluate Venezuela's oil assets, despite Trump previously criticizing the company for calling the country "uninvestable."

Offshore Drilling Battle Lines

Newsom isn't having any of Trump's offshore drilling plans for California. "As it relates to offshore oil drilling, it's overwhelmingly opposed by members of all political parties in the state of California," the governor said.

He went further at Brazil's COP30 summit last year, slamming Trump's energy agenda as "reckless" and claiming it would "put China first and America last" by ceding leadership in the clean energy economy to Beijing.

So who gets credit for California's lower gas prices? Newsom says it's his transparency measures. Trump supporters might point to increased domestic production signals. The reality, as always with energy markets, is probably more complicated than any single politician wants to admit.