Lawsuit Claims AI Enables Gas Stations to Inflate California Fuel Costs

WHO:

ABC News - The lawsuit names gas station operators including Marathon, Circle K, BP, Speedway, EG America, Walmart, and Albertsons.

ABC News - The plaintiffs in the lawsuit represent California drivers who purchased gas at stations using Kalibrate software since June 2022.

WHAT:

ABC News - A federal lawsuit accuses gas station operators of using AI-powered software to illegally collude and raise fuel prices.

ABC News - The lawsuit describes Kalibrate as the “central nervous system for a conspiracy to extinguish retail price competition among gas stations.”

ABC News - The lawsuit claims that Kalibrate helps coordinate high prices and discourages users from pricing gas lower than competitors.

ABC News - The lawsuit states that research into algorithmic fuel-pricing software found average price increases of about 6 cents per gallon, rising to as much as 30 cents per gallon in certain markets.

ABC News - The lawsuit claims that a single cent increase at the pump will cost California drivers $134 million annually.

WHERE:

ABC News - The lawsuit pertains to gas stations across California.

ABC News - Kalibrate is headquartered in Manchester, England and operates in more than 70 countries.

WHEN:

ABC News - The lawsuit was filed on a Monday.

ABC News - The lawsuit seeks to represent California drivers who bought gas at stations using Kalibrate software since June 2022.

WHY:

ABC News - The lawsuit alleges that gas stations are using AI to facilitate cartel-like collusion and inflate prices.

ABC News - The lawsuit follows concerns over algorithmic pricing, which prompted California Governor Gavin Newsom to sign a bill stating that state antitrust law applies to pricing algorithms.

HOW:

ABC News - The lawsuit claims that Kalibrate enables gas stations to avoid competing with other area stations and to charge higher prices by surrendering pricing decisions and sensitive data to the software.

ABC News - The lawsuit describes a “restoration” tool that helps gas stations in an area raise their prices contemporaneously and significantly.

(UPDATED June 24, 2026 21:29 UTC)

A federal lawsuit has been filed against several gas station operators, including Marathon, Circle K, BP, Speedway, EG America, Walmart, and Albertsons, accusing them of using AI-powered software called Kalibrate to illegally collude and inflate fuel prices across California. The lawsuit claims that Kalibrate acts as the “central nervous system for a conspiracy to extinguish retail price competition,” leading to average price increases of about 6 cents per gallon, and in some markets, as much as 30 cents. It also states that a single cent increase at the pump could cost California drivers a staggering $134 million annually, prompting concerns that led Governor Gavin Newsom to sign a bill reinforcing that state antitrust law applies to pricing algorithms.