California gas prices $1.64 above national average as lawsuit alleges Kalibrate's AI software coordinates high prices at 7-Eleven, Walmart, and BP stations.
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Three California residents filed a class action lawsuit on June 22 alleging that a fuel pricing company and several gas station operators use an AI-based system to coordinate high gasoline prices. The complaint, filed in the U.S. District Court for the Eastern District of California, targets Kalibrate and its Kalibrate Fuel Pricing software, which the plaintiffs say connects directly to station pumps and signs to set prices based on competitor data rather than market competition.
“Instead of lowering prices to attract drivers, Kalibrate Fuel Pricing relies on the data of competing gas stations to coordinate high prices and wring more money from the pockets of consumers throughout the state,” the lawsuit states. The plaintiffs call the scheme a “modern, digital iteration of traditional price-fixing.”
Kalibrate’s software is used across more than 20 countries and actively prices over 25,000 fuel sites, according to the company. Kalibrate claims the platform delivers “competitive, profitable prices at speed” powered by AI-driven intelligence, and that the average weekly profit per site rises by $331 from the optimization. The plaintiffs argue that the system enables nearly all gas stations in a market to raise prices simultaneously, a feature they say violates California law.
The lawsuit names 7-Eleven, Walmart, Sam’s Club, and BP as defendants, along with 14 other gas station operators and 10 unidentified retail fuel companies. The plaintiffs – Joel Casciani, Paola Hartman, and Crystal Turnbough – seek an injunction to stop the alleged collusion and compensation for what they describe as “substantial overcharges.”
California’s average gasoline price stood at $5.56 per gallon on June 23, more than $1.60 above the national average of $3.92, according to AAA data. The lawsuit claims the “artificial surcharge” from the pricing algorithm imposes a severe daily financial toll on millions of Californians, especially truck drivers and others whose livelihoods depend on road transport.
In May, a group of lawmakers introduced the Transportation Fuel Market Transparency Act, which would create a monitoring unit within the Federal Trade Commission to police fuel markets for fraud and anti-competitive behavior. The bill would also raise penalties for bad actors. The lawsuit comes as California’s refining capacity has fallen to about 1.3 million barrels per day from 2.5 million in 1982, and in-state oil production dropped to roughly 300,000 barrels per day from over 1 million, according to defense and engineering expert Mike Fredenburg.
The Epoch Times reached out to Kalibrate, 7-Eleven, Walmart, Sam’s Club, and BP for comment but did not receive a response by publication time. The case is in its early stages, and no court date has been set.
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