California’s petroleum watchdog warns of rising gas prices amid reduced refinery output

Drew Bohan, Executive Director at California Energy Commission
Drew Bohan, Executive Director at 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 refinery maintenance is expected to reduce in-state production between September and November 2025.

“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 the year, retail gasoline prices increased after an incident at the PBF Energy refinery in Martinez. The price hikes were linked to three significant increases on California’s spot markets, where wholesale gasoline is traded. Prices later stabilized in late spring and summer 2025 as imports of gasoline and blending components consistently 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 address potential impacts from both planned and unplanned refinery maintenance that could affect consumers.

The DPMO and CEC continue to track factors influencing gasoline prices such as possible import tariffs, additional refinery outages, weather events, and trends in national futures markets.

Since August 15, retail gasoline prices have climbed by about 16 cents per gallon, with Southern California seeing the largest increases. The spot market has shown volatility during this period, while forward market prices for future delivery remain elevated for several months ahead.

As these conditions persist, DPMO advises Californians to compare prices between name-brand and unbranded gasoline retailers. The agency notes that although branded fuel usually costs more, all gasoline sold in California must meet strict state standards for emissions control and engine performance.

The Division of Petroleum Market Oversight operates within the California Energy Commission. It oversees investigations, economic analysis, and policy recommendations related to transportation fuels. The agency was established as part of Senate Bill X1-2—the California Gas Price Gouging and Transparency Law—passed during a special legislative session in 2023.



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