California’s Petroleum Watchdog Issues Market Update Amid Iran Conflict and Rising Gas Prices

For Immediate Release: June 12, 2026

SACRAMENTO — Today, the Division of Petroleum Market Oversight (DPMO) sent a letter to Governor Gavin Newsom and state legislative leadership summarizing the Iran conflict’s impact on gas prices and identifying two market structure issues impacting gas and diesel consumers.

Since the start of the Iran conflict, retail gas prices have shot up around the country. Increases in California have been consistent with price increases in the rest of the U.S.; however, this conflict has emphasized the unique and growing difference between branded and unbranded retail gas prices in California.

“The Iran Conflict has already cost Californian households more than $200 in extra gasoline costs, with American families in some parts of the country paying as much as $350 in extra gasoline costs,” said DPMO Director Tai Milder. “While our price increases are consistent with the rest of the country, we are seeing inflated prices for branded gasoline that are adding to the pain at the pump. Gasoline is not a luxury good. These branded prices are unacceptable for Californians who need to get to work and support their families.” 

DPMO’s 2024 Annual Report describes how branded suppliers raised prices in vertically integrated sales channels following the Torrance Refinery fire in 2015. DPMO, along with the California Energy Commission (CEC) and the California Department of Tax and Fee Administration (CDTFA), is continuing to explore the role that branded suppliers and retailers are playing in these high street prices. This work includes an investigation of high-priced stations, which DPMO announced in an enforcement bulletin and consumer advisory on March 19.

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.

Today’s letter also identifies structural issues with how prices are assessed on California’s diesel markets. Even though California is a global leader in the production of renewable diesel and biodiesel, these structural issues — including issues DPMO has previously flagged with the Oil Price Information Service (OPIS), the dominant private price reporting agency in California — have prevented consumers from realizing many of these benefits.

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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.