- California drivers allege AI pricing software inflated fuel costs statewide.
- Lawsuit targets Walmart, BP, Marathon, 7-Eleven, and software provider Kalibrate.
- Plaintiffs claim even small price increases cost motorists hundreds of millions annually.
California is famous for plenty of things, but few grate quite like its fuel prices, which already rank among the steepest in the nation. As of today, regular runs $5.56, mid-grade $5.788, and premium $5.95. Now a group of residents claims the state’s major station operators have been leaning on shared pricing software to coordinate what they charge at the pump, potentially skimming millions from drivers one penny at a time.
If the claims hold up in court, the case could become one of the most significant legal tests yet of AI’s growing role in setting prices.
Who’s Named In The Complaint
Filed in federal court in Sacramento on June 22, the complaint, first brought to light by Bloomberg, names Walmart, Marathon Petroleum, BP, 7-Eleven, and fuel-pricing software provider Kalibrate Fuel Systems. According to the plaintiffs, more than 1,700 California gas stations relied on Kalibrate’s AI-driven pricing platform to automatically adjust fuel prices using confidential market data shared among participating retailers.
Read: As Gas Prices Soar, Here’s How To Cut Your Fuel Bill Now
The lawsuit claims the system helped operators raise gasoline prices by as much as 22 cents per gallon and diesel prices by up to 33 cents per gallon. Plaintiffs argue that every additional penny added to fuel prices costs California drivers roughly $134 million annually. “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,” the complaint said, according to The Guardian.
A First Test For California’s New Law
At the center of the case is California’s recently enacted AB 325, a law passed in 2025 that prohibits the use of shared pricing algorithms that could facilitate anticompetitive behavior. The lawsuit is believed to be among the first major legal challenges brought under the new legislation and seeks damages on behalf of drivers who allegedly overpaid at the pump.
All of this is happening just weeks after California authorities issued subpoenas to several station operators as part of an investigation into high fuel prices. For now, the allegations remain unproven. For its part, Kalibrate says on its website that “each retailer’s AI instance is entirely separate, with no shared data or models, and no interaction between competitors.”
Representatives for Walmart said that it is “reviewing the complaint and will respond appropriately in court.” BP declined to comment. Marathon, 7-Eleven, and Kalibrate didn’t respond to requests for comment.
Photos: Kalibrate, Shell
