Could AI Be Driving Up Gas Prices in California? New Lawsuit Raises Questions for Antelope Valley Drivers
- Brian Lawrence
- Jun 26
- 3 min read
California drivers are already used to paying some of the highest gas prices in the country, but a new federal lawsuit is now raising a different question: could artificial intelligence be helping keep those prices higher?
A proposed class-action lawsuit filed in federal court in Sacramento accuses several major gas station operators, including BP, Circle K, Marathon Petroleum, 7-Eleven, Walmart, and Albertsons, of using AI-powered pricing software from a company called Kalibrate to allegedly coordinate gasoline prices in California. [1][2][5]
The lawsuit claims the software used competitor data to recommend or influence gas prices, reducing true competition at the pump. The allegations have not been proven in court. [1][3][4]
According to reports on the lawsuit, the plaintiffs allege the AI tool helped raise gas prices by as much as 30 cents per gallon in some affected areas. Reports also point to a “restoration” feature that allegedly allowed multiple stations to raise prices around the same time, with claimed average increases of about 6 cents per gallon and higher impacts in areas where the software was widely used. [3][4]
For Antelope Valley drivers, even small increases can add up quickly. Many residents in Lancaster, Palmdale, Quartz Hill, Rosamond, and Lake Los Angeles commute long distances for work, school, medical appointments, and daily errands. A few extra cents per gallon can hit families harder here because driving is not optional for most people in the AV.
As of June 26, 2026, AAA listed California’s average regular gas price at about $5.49 per gallon, compared with the national average of about $3.90. In the Los Angeles-Long Beach region, which affects many Southern California drivers, AAA also listed regular gas at about $5.49 per gallon. [6]
...driving is not optional for most people in the AV.
The case is also getting attention because California recently updated its antitrust law to address algorithmic price fixing. AB 325, signed into law in 2025 and effective January 1, 2026, makes it unlawful to use or distribute a common pricing algorithm as part of an agreement or conspiracy to restrain trade. The law defines a common pricing algorithm broadly as software or technology used by two or more parties that uses competitor data to recommend, align, stabilize, set, or influence prices. [7]
Supporters of the lawsuit argue this is the modern version of price fixing: not a backroom handshake, but a shared pricing system that can influence competitors at the same time. Critics and the companies involved will likely argue that pricing software does not automatically equal collusion, and that gas prices are also affected by taxes, refinery issues, crude oil prices, supply disruptions, and California’s unique fuel market.
For now, the lawsuit is still only an allegation. But for AV drivers watching every dollar at the pump, the bigger issue is clear: as more companies use AI to set prices, consumers may have fewer ways to know whether they are paying a fair market price — or a price shaped by technology behind the scenes.
Antelope Valley News will continue following this case and what it could mean for California drivers.
References [7]
Class-Action Lawsuit Blames AI for Gas Price Inflation in California. Car and Driver.
https://www.caranddriver.com/news/a71709512/california-ai-gas-price-inflation-class-action/
7-Eleven, Circle K named in lawsuit over using AI to boost gas prices. C-Store Dive.
AI is helping gas stations collude to raise California fuel prices, lawsuit says. The Washington Post / Associated Press. https://www.washingtonpost.com/business/2026/06/24/gas-price-california-lawsuit-kalibrate-collusion/28d247d2-700a-11f1-8730-e7fd0e2a6404_story.html
AI is helping gas stations collude to raise California fuel prices, lawsuit says. Associated Press.
BP, Marathon, 7-Eleven, Walmart sued for allegedly using AI to boost California gas prices. Reuters.
Gas Prices: California Average. AAA Gas Prices.
California Assembly Bill 325 — Common Pricing Algorithms / Cartwright Act Update. LegiScan.
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