AI is helping gas stations collude to raise California fuel prices, lawsuit says
FILE-High gas prices are displayed at a Chevron gas station on May 11, 2026 in Pasadena, California. (Photo by Mario Tama/Getty Images)
A federal lawsuit alleges that AI software has permitted gas station operators in California to unlawfully collude and raise prices at the pump.
A proposed class action lawsuit obtained by The Associated Press claims that gas station companies including Marathon and Circle K have violated California’s antitrust law through Kalibrate, a fuel-pricing software system used across the world.
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Kalibrate is also accused in the lawsuit of collusion tied to claims of price-fixing conducted through AI.
Citing the lawsuit, the AP reported that research into algorithmic fuel-pricing software determined that average gas price increases were roughly 6 cents per gallon, increasing to as much as 30 cents per gallon in markets where stations use the technology.
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Worries over algorithmic pricing led to California Gov. Gavin Newsom signing a bill in 2026 saying that state antitrust laws pertain to pricing algorithms.
Defendants in the lawsuit, including BP, Speedway, EG America, Walmart and Albertsons, operate over 1,700 gas stations in California.
According to the AP, this recent lawsuit seeks to represent California drivers who purchased gas at local stations using Kalibrate software since June 2022.
What are the current gas prices in California?
By the numbers:
As of Monday, the average gas price in California is $5.45 per gallon, according to AAA.
The Source: Information for this story was provided by The Associated Press, which references a lawsuit on the AI tool and AAA. This story was reported from Washington, D.C.