California Gas Stations Accused of Price Fixing with AI-Powered Software

A class-action lawsuit filed in California's Eastern District federal court alleges that gas station operators in the state are using an AI-powered pricing software to artificially inflate fuel prices. The software, Kalibrate Fuel Pricing, is designed to help stations set the highest possible price that remains competitive.

However, the lawsuit claims that the tool is being used to coordinate price hikes among stations, resulting in higher prices for consumers. The lawsuit names Kalibrate and about a dozen station operators as defendants, as well as unnamed companies that use the software. The plaintiffs argue that the use of this software is a violation of California's anti-trust law, which was amended in 2026 to include language specific to the use of common pricing algorithms.

5 percent increase in fuel prices. 9 cents per gallon. The lawsuit notes that every one-cent increase in prices means an extra $134 million in fuel costs annually for California fuel purchasers. The case highlights concerns about the use of AI-powered pricing software in the fuel industry and its potential impact on consumers.

As the lawsuit moves forward, it will be important to watch how the court interprets the amended anti-trust law and its application to this type of software. The outcome could have significant implications for the fuel industry and consumers in California.