California Drivers File Lawsuit Against Major Gas Stations, Alleging AI‑Driven Price Inflation

California motorists have filed a proposed class action against a coalition of gas station operators, including BP, Circle K, Marathon, 7‑Eleven, Walmart, and Albertsons, alleging that these firms used artificial intelligence to inflate pump prices.

According to the complaint, the defendants breached the state’s primary antitrust statute, the Cartwright Act, by deploying an AI‑based tool that aggregates data from competing stations to coordinate higher prices and extract additional revenue from consumers.

The lawsuit, filed in the Sacramento federal court, notes that the scheme also violates Assembly Bill 325, a California law that took effect on January 1 to curb algorithmic price‑fixing.

Plaintiffs claim that gas prices have risen by up to 30 cents per gallon in areas where the AI tool is applied. They argue that this cost California consumers an extra $134 million annually, pushing gasoline prices to “astronomical” levels that can reach $7 per gallon.

“While families struggle to afford daily commutes, the defendants have conspired to eliminate competition, creating an AI‑powered cart in order to keep prices artificially high regardless of the station chosen,” the complaint states.

The operators involved run more than 1,700 stations throughout the state, according to the complaint, and the AI company Kalibrate is also named as a defendant. The companies either have not responded to requests for comment or have declined to comment.

California residents currently face the nation’s highest average gasoline price, at $5.58 per gallon for regular fuel, compared with the national average of $3.93, according to AAA. The lawsuit seeks unspecified damages for drivers who may have overpaid for gasoline.

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