BP, Walmart and Others Sued Over Alleged AI-driven Petrol Price Fixing

Drivers in California have filed a proposed class action lawsuit against several major fuel retailers, including BP, Marathon Petroleum, Circle K, 7-Eleven, Walmart and Albertsons, alleging they used artificial intelligence to artificially inflate petrol prices.

The complaint, filed in a Sacramento federal court, claims the defendants violated California’s Cartwright Act by using an AI-based pricing tool that draws on competitor data to coordinate higher fuel prices and extract more money from consumers.

The lawsuit also alleges breaches of Assembly Bill 325, which came into force on January 1 and was designed to curb algorithmic price fixing.

According to the filing, petrol prices have risen by as much as 30 cents per gallon in areas with a high concentration of stations using the AI tool, supplied by Kalibrate.

The complaint argues that each additional cent in fuel prices costs California drivers around $134 million annually, pushing prices at times to as high as $7 per gallon.

“While families struggle to afford the commute to work, defendants have conspired to put an end to competition, joining an AI-powered trust to ensure that no matter where a driver turns, the price for gasoline is artificially high,” the filing stated.

The defendants collectively operate more than 1,700 petrol stations in California, according to the complaint. Kalibrate is also named as a defendant.

The companies either did not immediately respond to requests for comment or declined to comment.

California currently has the highest petrol prices in the United States, averaging $5.58 per gallon for regular fuel, compared with a national average of $3.93, according to AAA.

The lawsuit seeks unspecified damages for drivers who say they were overcharged for fuel.

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