CALIFORNIA – Amid escalating tensions in the Middle East and rising gas prices, the Division of Petroleum Market Oversight (DPMO) issued an enforcement bulletin and consumer advisory on March 19.
DPMO said it is aware of reports of a small number of California stations charging over $7, even $8, per gallon.
The agency is monitoring California fuel markets to prevent firms from exploiting the Middle East conflict to inflate prices.
Although some stations are charging significantly higher prices, these increases are not supported by current crude oil or gasoline futures, according to DPMO.
AAA data shows California’s average price is about $5.76 per gallon for regular gas, as of March 22. Prior to the conflict, the average price was $4.50 per gallon in California.
Market oversight intensifies
Since Feb. 28, 2026, the Strait of Hormuz — a critical oil chokepoint — has effectively closed, a disruption energy experts call the largest in oil market history.
In response to reports of potential price gouging, DPMO director Tai Milder said the agency is tracking retail, wholesale, and spot markets.
“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,” Milder said.
State engages stations over high prices
Under a 2023 law creating the Division of Petroleum Market Oversight, state officials can investigate price increases not justified by underlying costs.
DPMO said it is engaging with stations where prices exceed those costs and urges Californians to shop around, including between name-brand and unbranded gas.
While branded gas often costs more, all gasoline sold in California must meet strict state standards for emissions and engine performance.
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