Manipulation of Fuel Prices in California

SACRAMENTO, California, October 24, 2025 – The state's petroleum oversight agency has published its annual report confirming allegations of overcharging at California's gas pumps over the past decade. According to the report, from 2015 to 2024, an estimated $59 billion was overcharged on the state's diesel fuel.

Established through special session legislation in 2023, the Petroleum Market Surveillance Division determined that the increases in fuel prices for 2024 were less severe following the transparency and accountability reforms introduced by the laws.

The report also shows that the refined margins for branded gas stations have been significantly higher than those for unbranded stations over the past decade: 75 cents for branded stations and 41 cents for unbranded ones. This indicates that vertically integrated refiners like Chevron and Marathon have used their market power to increase prices at branded stations. Soon, it is projected that four refineries will control 98% of California's refining market, highlighting it as the most concentrated market in the U.S.

Jamie Court, President of the Consumer Protection Association, stated, "This is a validation showing that Californians have suffered at the pump for decades. The public already knows about the excesses that Californians are spending on fuel due to high refinery profit margins. The steps the state takes to address this extra charge are crucial; so far, all they have done is acknowledge its existence. That's not enough."

Following an explosion at Exxon's Torrance refinery in 2015, fuel refiners began to increase fuel prices at branded stations by 30 to 40 cents to gain extra profits. The Consumer Protection Association first raised the issue of the price difference between branded and unbranded prices during a presentation to California State Governor Jerry Brown at the Petroleum Market Advisory Committee (PMAC) in 2015. The lack of a quick response to this event in 2015 is noteworthy.

“It took 10 years to validate an occurrence that the Consumer Protection Association witnessed in 2015,” Court said, “We have made progress on transparency, but more accountability is still needed,” he continued.