AI Accused of Artificially Inflating Gas Prices in the US

A class-action lawsuit has been filed in California, USA, against major gas station operators and software developer Kalibrate Fuel Systems. The lawsuit alleges that the companies used an AI-based pricing system to coordinate fuel prices, causing millions of dollars in losses for drivers. This is reported by Ixbt.com news reports.

According to documents submitted to the Sacramento federal court, giants such as Walmart, Marathon Petroleum, BP, and 7-Eleven are named as defendants. The plaintiffs emphasize that the algorithm developed by Kalibrate served as a tool to stifle market competition and keep prices high.

Hidden Agreement Behind Algorithms

According to ixbt.com, more than 1,700 gas stations in California used the Kalibrate platform. This system automatically calculated fuel prices based on confidential market data from other participants. Experts believe such a mechanism effectively limited free competition, leading to artificially inflated prices.

Court materials state that due to this algorithm, gasoline prices may have increased by 22 cents per gallon and diesel by 33 cents. Even a seemingly small difference of one cent translates to nearly $134 million in additional annual costs for California drivers.

Legislation and Technological Oversight

This legal process is expected to be one of the world's first major legal clashes regarding the use of AI in pricing. At the center of the case is law AB 325, which came into effect in California in 2025. This law prohibits the use of common algorithms that may lead to anti-competitive behavior among market participants.

So far, the accused companies have not admitted guilt. Kalibrate representatives claim that a separate instance of the AI is provided for each client and that data is not shared between competitors. Walmart stated it is reviewing the claim and will defend its position in court.

This case has once again brought the issue of AI regulation to the global agenda. If the allegations are proven, it could trigger a sharp increase in oversight of the digital economy and pricing algorithms not only in the US but worldwide.