The Division of Petroleum Market Oversight (DPMO) announced on Mar. 19 that it is closely monitoring California’s fuel markets following the closure of the Strait of Hormuz due to conflict in the Middle East, which began on February 28. The agency said it is working to ensure that companies do not use the situation to unfairly raise or artificially inflate gasoline prices.
The closure of the Strait of Hormuz has been described by energy experts as the “largest supply disruption in the history of the global oil market.” This development has raised concerns about potential impacts on fuel prices for consumers across California.
“Our team is vigilantly monitoring the retail, wholesale, and spot markets,” said DPMO Director Tai Milder. “Any reports of unfair practices or market manipulation will be taken seriously, and we will not hesitate to refer any illegal conduct for further investigation and prosecution.”
DPMO reported awareness of public accounts indicating some California gas stations are charging more than $7 or even $8 per gallon. The agency stated these high prices are not justified by current crude oil costs or gasoline futures and said it is engaging with stations whose pricing appears disproportionate to their own cost increases.
As gas prices rise, DPMO encouraged Californians to compare prices between name-brand and unbranded gasoline options. The agency noted that all gasoline sold in California must meet strict state standards for emissions control and engine performance, regardless of branding.
The Division of Petroleum Market Oversight operates as an independent agency within the California Energy Commission. It was established under Senate Bill X1-2, known as the California Gas Price Gouging and Transparency Law, enacted during a special session in 2023.
