California Consumers Sue Major Gas Station Chains Over AI-Powered Fuel Price Manipulation

A class-action lawsuit filed in federal court in Sacramento on June 22 alleges that Walmart, Marathon Petroleum, BP, and 7-Eleven used an AI-driven pricing tool from Kalibrate Fuel Systems to illegally inflate fuel prices in California. The plaintiffs claim the algorithm added up to 22 cents per gallon for gasoline and 33 cents per gallon for diesel, exacerbating already record-high prices that have topped $7 per gallon in some areas. The lawsuit, one of the first brought under California’s AB 325—a law passed last year banning shared pricing algorithms—seeks damages for drivers who overpaid under state antitrust laws. California’s fuel watchdog has already issued subpoenas to some station owners over high prices, and the state’s energy regulator has intensified oversight following Governor Gavin Newsom’s 2023–2024 legislative push to tighten industry controls. Walmart stated it is reviewing the complaint, while BP declined to comment. Marathon, 7-Eleven, and Kalibrate did not respond to requests for comment. The lawsuit highlights broader tensions over fuel pricing in California, where prices have become a political flashpoint amid Newsom’s potential presidential ambitions and the Trump administration’s push for expanded oil drilling.