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 Feb. 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 DPMO’s actions come as energy experts have described the current disruption as the “largest supply disruption in the history of the global oil market.” The closure of this critical oil chokepoint has raised concerns about potential impacts on fuel availability and pricing 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.”
The agency noted that there have been public reports of some California gasoline stations charging more than $7 or even $8 per gallon. According to DPMO, these high prices are not justified by current crude oil prices or gasoline futures. The division is engaging with stations whose pricing appears disproportionate compared to their own cost increases.
As gas prices rise, DPMO encourages Californians to compare prices between name-brand and unbranded gasoline options. The agency emphasized that all gasoline sold in California must meet strict state standards for emissions control and engine performance, regardless of branding.
DPMO operates as an independent agency within the California Energy Commission and is responsible for oversight, investigations, economic analysis, and policy recommendations regarding transportation fuels. It was established as part of Senate Bill X1-2—the California Gas Price Gouging and Transparency Law—enacted during a special session in 2023.
