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 closure of this critical oil passage has been described by energy experts as the “largest supply disruption in the history of the global oil market.” The DPMO said its oversight aims to ensure that companies do not use the situation to unfairly raise or artificially inflate gasoline prices for consumers.
“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 acknowledged public reports that some California gas stations are 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 contacting stations with pricing that appears disproportionate to their cost increases.
DPMO also advised Californians to compare prices between name-brand and unbranded gasoline retailers as price differences may exist, but all gasoline sold in California must meet state standards for emissions control and engine performance.
The Division of Petroleum Market Oversight operates independently within the California Energy Commission and was established under Senate Bill X1-2 during a special legislative session in 2023. Its responsibilities include oversight, investigations, economic analysis, and policy recommendations regarding transportation fuels.
