[Stay on top of transportation news: Get TTNews in your inbox.]
Lawsuit Says Gas Stations Used AI to Set California Prices
Consumers at Walmart, Marathon, BP, 7-Eleven Allege Kalibrate Tool Added 22 Cents to Gas and 33 Cents to Diesel
Key Takeaways:
- California consumers sued Walmart, Marathon Petroleum, BP and 7-Eleven on June 22, alleging AI-driven fuel pricing illegally manipulated pump prices.
- Plaintiffs said Kalibrate’s algorithm inflated gas by up to 22 cents a gallon and diesel by 33 cents in California.
- Walmart said it is reviewing the complaint, BP declined comment and California’s fuel watchdog has subpoenaed some station owners over high prices.
A group of California consumers claimed in a lawsuit that gas station owners including Walmart Inc., Marathon Petroleum Corp., BP and 7-Eleven Inc. are using artificial intelligence to illegally manipulate pump prices in the state that already has the highest rates in the U.S.
The companies, which operate more than 1,700 filling stations across the state, are using an AI tool from Kalibrate Fuel Systems that automatically adjusts prices based on confidential data at a time when gasoline topped $7 a gallon in some areas, according to the complaint filed June 22 in federal court in Sacramento.
Using the algorithm, station owners inflated gasoline by as much as 22 cents a gallon and diesel by 33 cents, on top of already high prices caused by the U.S. war with Iran, the plaintiffs alleged. Every additional penny costs California drivers about $134 million a year, according to the complaint.
Last month, California’s fuel watchdog issued subpoenas to some stations' owners over high prices.
The suit is among the first brought under AB 325, a law California passed last year that prohibits the use of shared pricing algorithms. It seeks damages for drivers in the state who overpaid for gas under California antitrust law.
Walmart, in a statement, said it is “reviewing the complaint and will respond appropriately in court. BP declined to comment. Spokespeople for Marathon, 7-Eleven and Kalibrate didn’t respond to emails seeking comment on the suit.
Gas prices in California have been closely watched by the state’s energy regulator after Gov. Gavin Newson signed a series of bills in 2023 and 2024 bolstering oversight of the industry.
The highest pump prices in the country have been a pain point for Newsom, who is expected to make a bid for the 2028 Democratic presidential nomination and has softened his once-hostile approach to the state’s dwindling fuel-making industry. California’s fuel prices also have become a rallying point for the Trump administration, with Energy Secretary Chris Wright touting a controversial offshore oil-drilling project in the state.
Walmart ranks No. 1 on the Transport Topics Top 100 list of the largest private carriers in North America.
