California drivers filed a class-action lawsuit alleging major gas station chains conspired to use artificial intelligence to drive up gas prices in a state already paying the highest fuel costs in the nation.
The lawsuit names BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons.
Filed in Sacramento federal court, the complaint alleges the gas station operators violated California’s Cartwright Act — the state’s primary antitrust law — by using AI-driven pricing technology to eliminate competition.
“While families struggle to afford the commute to work, defendants have conspired to put an end to competition, joining an AI-powered trust to ensure that no matter where a driver turns, the price for gasoline is artificially high.”
Californians currently pay $5.58 per gallon for regular gasoline, according to AAA — compared to the national average of $3.93 per gallon.
The lawsuit alleges the defendants used pricing software from a company called Kalibrate that allowed stations to align pricing decisions instead of competing independently.
Drivers claim the AI tool drove up gas prices by as much as 30 cents per gallon in areas where the system is widely used.
The complaint cites California Assembly Bill 325, which cracks down on algorithmic price fixing.
By participating in the system, plaintiffs argue, the stations reduced competition among fuel retailers and skyrocketed prices for consumers.
The lawsuit seeks unspecified damages on behalf of drivers who allegedly overpaid for gasoline. It names both Kalibrate and the participating gas stations as defendants.
The charges remain allegations. The case has not been proven in court.
The case comes amid increasing scrutiny of algorithmic pricing systems across industries — including revenue-management software in the housing market, where plaintiffs and regulators have argued shared pricing algorithms weaken competition.
