California’s Petroleum Watchdog Protecting Consumers Amid Middle East Conflict and Rising Gas Prices
For Immediate Release: March 19, 2026
Contact: mediaoffice@energy.ca.gov
Phone: (916) 654-4989
WHAT TO KNOW: The conflict in the Middle East is driving significant fuel price increases around the country. California’s petroleum watchdog is protecting consumers from opportunistic pricing at the pump.
SACRAMENTO – Today, the Division of Petroleum Market Oversight (DPMO) issued an Enforcement Bulletin and a Consumer Advisory in light of the Middle East conflict and rising gas prices throughout the country.
Since the conflict began on February 28, 2026, the Strait of Hormuz – a critical oil chokepoint – is effectively closed. Energy experts have called this the “largest supply disruption in the history of the global oil market.” DPMO is closely monitoring California’s fuel markets to make sure firms do not exploit the conflict to opportunistically raise or artificially inflate prices.
“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.”
DPMO is aware of public reports of a limited number of California retail gasoline stations charging above $7 or even $8 per gallon. These extraordinarily high prices are not supported by current crude oil prices or gasoline futures. DPMO is engaging with stations that are pricing in a manner that is disproportionate to their own cost increases.
As prices increase, DPMO encourages Californians to shop around and compare prices between name-brand and unbranded (or generic) gasoline. While retailers typically charge more for branded gasoline, all gasoline sold in California must meet the state’s high standards for emissions control and engine performance.
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About the Division of Petroleum Market Oversight
The Division of Petroleum Market Oversight is an independent agency within the California Energy Commission responsible for oversight, investigations, economic analysis, and policy recommendations regarding the transportation fuels market. The watchdog agency is a key part of the California Gas Price Gouging and Transparency Law, Senate Bill X1-2, enacted in special session in 2023.
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