California’s Division of Petroleum Market Oversight (DPMO) has issued a market update and consumer advisory in response to rising gasoline prices and tight supply conditions expected between September and November 2025. The announcement is based on data from transparency and reporting tools developed by the Legislature over the past two years, which provide insight into refinery maintenance activities.
DPMO Director Tai Milder stated, “Price stability will depend on market participants’ continued advance preparation through maintaining adequate inventories, ordering sufficient cargoes, and avoiding reactive spot market behavior.” Milder added that DPMO’s enforcement team will monitor the market closely during this period.
Earlier in 2025, retail gasoline prices increased after an incident at the PBF Energy refinery in Martinez. This led to three significant price surges on California’s wholesale gasoline markets. Prices later stabilized as imports of gasoline and blending components regularly surpassed 170,000 barrels per day.
The DPMO is working with the California Energy Commission (CEC), other state agencies, and petroleum industry members to address potential impacts from both planned and unplanned refinery maintenance that could affect consumers.
Additional factors influencing gasoline prices are also being monitored by DPMO and CEC. These include possible import tariffs, further refinery outages, weather events, and trends in national futures markets.
Since August 15, retail gasoline prices have increased by about 16 cents per gallon statewide, with Southern California seeing the largest jumps. Volatility has been noted in the spot market during this time frame, while forward market prices for future delivery remain elevated for several months ahead.
As a result of these increases, DPMO advises Californians to compare fuel prices among retailers. The agency notes that while branded gasoline often costs more than unbranded options, all fuels sold in California must comply with strict emissions control and engine performance standards set by the state.
The Division of Petroleum Market Oversight operates as an independent agency within the California Energy Commission. It is responsible for oversight, investigations, economic analysis, and policy recommendations related to transportation fuels. The division was established under Senate Bill X1-2 during a special legislative session in 2023 as part of efforts to improve gas price transparency and prevent gouging.
