California petroleum watchdog warns of rising gas prices amid tight supply

Drew Bohan, Executive Director at California Energy Commission - California Energy Commission
Drew Bohan, Executive Director at California Energy Commission - California Energy Commission
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California’s Division of Petroleum Market Oversight (DPMO) has issued a market update and consumer advisory as gasoline prices rise across the state and in-state production is expected to decrease between September and November 2025. The agency cited information from transparency and reporting tools created by the Legislature in recent years, which have provided more insight into refinery maintenance activities.

“Price stability will depend on market participants’ continued advance preparation through maintaining adequate inventories, ordering sufficient cargoes, and avoiding reactive spot market behavior,” said DPMO Director Tai Milder. DPMO’s enforcement team will closely monitor the market and participants’ action at this key time.

Earlier in 2025, retail gasoline prices increased after an incident at the PBF Energy refinery in Martinez. The price surge was linked to three major increases on California’s spot markets, where wholesale gasoline is traded. However, prices stabilized during late spring and summer as imports of gasoline and blending components regularly surpassed 170,000 barrels per day.

DPMO is working with the California Energy Commission (CEC), other state agencies, and members of the petroleum industry to try to limit impacts that both planned and unplanned refinery maintenance could have on consumers.

Both DPMO and CEC are also monitoring other factors that may affect gasoline prices. These include possible import tariffs, additional planned or unplanned refinery outages, weather events, and changes in national futures markets.

Since August 15, retail gasoline prices have risen by about 16 cents per gallon statewide. Southern California has seen some of the largest increases. During this period, volatility has been observed in the spot market, while forward market prices for future delivery remain high for the coming months.

As these price increases continue, DPMO recommends that Californians compare prices among retailers. While name-brand gas stations usually charge more than those selling unbranded fuel, all gasoline sold in California must meet strict state standards for emissions control and engine performance.

The Division of Petroleum Market Oversight operates independently within the California Energy Commission. It oversees investigations, economic analysis, and policy recommendations regarding transportation fuels markets as part of Senate Bill X1-2 passed during a special session in 2023.



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