California’s Division of Petroleum Market Oversight (DPMO) has issued a market update and consumer advisory as gasoline prices rise and the state faces tight supply conditions. The agency expects in-state production to decrease between September and November 2025, based on information from transparency and reporting tools developed by the Legislature over the past two years.
“Price stability will depend on market participants’ continued advance preparation through maintaining adequate inventories, ordering sufficient cargoes, and avoiding reactive spot market behavior,” said DPMO Director Tai Milder. DPMO’s enforcement team will closely monitor the market and participants’ action at this key time.
Earlier in 2025, retail gasoline prices increased after an incident at the PBF Energy refinery in Martinez. This led to three major price surges on California’s wholesale gasoline markets. Prices later stabilized during late spring and summer as imports of gasoline and blending components regularly surpassed 170,000 barrels per day.
DPMO is collaborating with the California Energy Commission (CEC), other state agencies, and petroleum industry members to reduce potential impacts from both planned and unplanned refinery maintenance on consumers.
The agencies are also tracking other factors that could affect gas prices, such as possible import tariffs, additional refinery outages, weather events, and trends in national futures markets.
Since August 15, retail gasoline prices have climbed about 16 cents per gallon across California. Southern California has seen some of the largest increases. During this period, volatility has been observed in the spot market while forward market prices for future delivery remain high for several months ahead.
As fuel costs rise, DPMO advises Californians to compare prices between name-brand retailers and unbranded stations. While branded fuels are often more expensive, all gasoline sold within California must comply with strict emissions control and engine performance standards set by the state.
The Division of Petroleum Market Oversight operates independently within the CEC. It is responsible for oversight, investigations, economic analysis, and policy recommendations related to transportation fuels. The agency was established under Senate Bill X1-2 during a special legislative session in 2023 as part of efforts to address gas price gouging and improve transparency in California’s fuel markets.
