As Gas Prices Skyrocket Due to War in Iran, Governor Hochul Slams Trump and Washington Republicans for Driving Up Costs

As gas prices skyrocket in New York and across the nation, Governor Kathy Hochul slammed President Trump and Washington Republicans for once again driving up costs for New Yorkers. Since President Trump launched the War in Iran on February 28, average gas prices across New York have increased by 62-cents per gallon, or roughly 21 percent, according to New York State Energy Research and Development Authority (NYSERDA), which tracks internal, industry and related association data for the state. Diesel prices have increased statewide by $1.13 per gallon, or 28 percent, since the war began and surpassed $5.00 per gallon on March 13.

Just this past weekend alone, statewide gasoline and diesel prices jumped 8-cents per gallon and 11 cents per gallon, respectively, from Friday to Monday. Home heating fuel like propane and crude oil are also rising due to the impacts of the war.

Governor Hochul today also highlighted her ongoing commitment to lowering energy costs, including her Ratepayer Protection Plan to cut hidden fees on utility bills, hold utility companies accountable, and increase access to energy affordability programs that help reduce monthly bills for New Yorkers. The Governor also highlighted her "all-of-the-above" energy strategy to build more nuclear, renewables and other energy sources to increase supply and keep costs down.

Additionally, Governor Hochul called on the State Legislature to work with her to make necessary changes to New York's Climate Leadership and Community Protection Act (CLCPA), which was enacted in 2019 under the previous State administration.

"President Trump promised to lower energy prices, but instead, he and his administration have driven up costs for New Yorkers with illegal tariffs - and now they're driving up gas prices with the War in Iran," Governor Hochul said. "As Republicans in Congress ignore these gas price hikes, I'll keep working to tackle rising energy costs by protecting consumers, holding utility companies accountable and building more of the energy sources our state needs."

Governor Hochul's Ratepayer Protection Plan

As part of her 2026 State of the State Address in January, Governor Hochul announced her Ratepayer Protection Plan with comprehensive proposals to bring down energy costs for New Yorkers. The Governor's plan includes:

Removing hidden fees on utility bills: Ensuring consumers never pay for inappropriate spending by utility companies, including corporate advertising, fines, and certain legal fees.

Tying executive pay to affordability: Utility companies will be required to publicly disclose how CEO salaries compare to the average worker's pay and executive compensation will be tied directly to customer affordability.

Eliminating gold-plated rate cases: When proposing new rates, utilities will be required to prioritize affordability by presenting a budget-constrained option that keeps their operating and capital costs below the rate of inflation.

Increasing access to energy affordability programs: Helping more New Yorkers to lower their monthly bills through discounts, cash assistance and upgrades that reduce their energy usage and costs.

Making data centers pay their fair share: Helping to protect everyday New Yorkers from rising costs caused by massive data centers, by requiring data centers in New York State to either pay for their own energy costs or supply their own energy.

President Trump promised to lower energy prices, but instead, he and his administration have driven up costs for New Yorkers with illegal tariffs - and now they're driving up gas prices with the War in Iran."

Reforming the CLCPA

Governor Hochul also called on the State Legislature to work with her to make changes to New York's Climate Leadership and Community Protection Act (CLCPA), which was enacted in 2019 under the previous State administration. While the CLCPA, also known as the Climate Act, is not the primary driver of the current high utility rates, not changing the law will make an already bad situation significantly worse.

According to a NYSERDA analysis, implementing the CLCPA on its current timeline will increase annual household energy bills by an additional $4,000 for upstate oil and natural gas households and $2,300 for NYC natural gas households by 2031. Implementing the CLCPA could also add $2.39 to gas prices - on top of whatever the price is by that time. Businesses will also be impacted, with the potential for their energy prices to increase 46 percent.

The Governor remains committed to clean energy and decarbonization goals. But she noted much has changed since 2019, when the Climate Act was signed into law by her predecessor, which has made it virtually impossible to meet the law's 2030 targets, including post-COVID inflation, supply chain issues and a Trump administration and Republican-controlled Congress that has launched an all-out assault on renewable energy.

North Tonawanda Mayor Austin Tylec said, "Rising energy and fuel costs are putting real pressure on both residents and businesses across our communities. Local governments see firsthand how these increases affect household budgets and the ability of small businesses to operate and grow. Finding ways to keep energy reliable while reducing costs for New Yorkers must remain a priority."

Town of Tonawanda Supervisor Joseph H. Emminger said, "Rising gasoline prices, as well as rising utility cost impact not only residential households, they have a significant impact on municipal budgets, not only in Western New York, but across New York State and the country. If you're a residential homeowner and you're feeling the pinch, the impact on your local municipal budget is probably 10 times that amount and Governor Hochul's initiative here is a message that needs to be heard."

Contact the Governor's Press Office