Many California drivers believe this is exactly what’s happening. A massive class-action lawsuit filed in federal court in Sacramento alleges that major fuel stations are using artificial intelligence to inflate prices.
The legal complaint accuses industry giants of forming a high-tech cartel across 1,700 stations. Drivers have pointed fingers at household names like BP, Circle K, Marathon, 7-Eleven, Walmart, and Albertsons. The lawsuit claims these businesses use software developed by Kalibrate to coordinate high pump prices.
Historically, local fuel stations fought tooth and nail for customers by dropping prices by a fraction of a cent. Now, that intense street-corner competition is being replaced by automated, algorithmic coordination.
The financial hit to California drivers is incredibly painful. With stations heavily using the AI tool, fuel prices have jumped by up to 30 cents a gallon. The dynamic software allegedly targets both gasoline and diesel fuel to squeeze drivers. While regular prices jumped by up to 30 cents, diesel prices spiked by an estimated 33 cents above competitive levels.
Each tiny penny added to the price costs California drivers a mind-boggling $134 million every year. At its worst, the artificial price hike pushed regular fuel toward astronomical peaks of $7 to $8 per gallon. Californians already pay some of the highest fuel prices in the nation, making this suspected collusion even harder to swallow.
Full story California drivers sue gas stations over alleged AI-driven fuel price inflation at the pump
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