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California drivers sue six fuel firms over AI price fixing

Published 23 June 2026

A group of California drivers has filed a class-action lawsuit accusing six major fuel retailers of using a shared artificial intelligence pricing tool to illegally coordinate and inflate gasoline prices. The complaint, filed on Monday, June 22, 2026, in federal court in Sacramento, names BP, Circle K, Marathon Petroleum, 7-Eleven, Walmart, and Albertsons as defendants.

The lawsuit alleges the companies used algorithmic software supplied by Kalibrate Fuel Systems Ltd., which drew on competitors' confidential pricing data to recommend what each station should charge. This practice, the plaintiffs argue, amounted to a price-fixing scheme that replaced ordinary competition with coordinated price hikes. The defendants collectively operate more than 1,700 filling stations across California.

The complaint claims the alleged coordination led to significant overcharges. In areas where a high share of stations used the tool, gasoline prices were inflated by roughly 22 to 30 cents per gallon, according to the filing. For diesel, the alleged overcharge was as much as 33 cents per gallon. The lawsuit states that every additional penny per gallon costs California drivers approximately $134...

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