California Watchdog Probes Gas Prices as Costs Rise

State agency warns some stations may be upcharging drivers amid global oil market volatility.

Mar. 21, 2026 at 12:53am

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California's new Division of Petroleum Market Oversight (DPMO) is investigating whether some gas stations are charging excessive prices as gas costs continue to climb. The agency, established in 2023, is tasked with increasing transparency in the oil and gas industry and protecting consumers from potential price gouging. Officials say they are in contact with stations charging as much as $7-$8 per gallon and want to understand the reasons behind the higher prices.

Why it matters

The DPMO was created in response to previous price spikes, with the goal of preventing consumers from being taken advantage of during periods of market volatility. As global oil markets remain unstable due to ongoing conflicts, the agency's work is crucial to ensuring gas prices in California are fair and justified.

The details

The DPMO, which is part of the California Energy Commission, is taking a 'trust but verify' approach to investigating the high gas prices. The agency has not named specific stations under review but says it is monitoring pricing across the state, particularly in Northern and Southern California where $7-$8 per gallon prices have been reported. Officials want to understand the reasons behind the price hikes and have conversations with station owners to ensure they are not artificially inflating profits.

  • The DPMO was established in 2023 following an emergency legislative session convened amid previous gas price spikes.
  • The agency is currently investigating the recent rise in gas prices across California.

The players

Division of Petroleum Market Oversight (DPMO)

A state accountability agency established by the California legislature to increase transparency in the oil and gas industry and protect consumers from potential price gouging.

Tai Milder

The director of the DPMO.

Gov. Gavin Newsom

The governor of California who supported the creation of the DPMO.

Sen. Roger Niello

A Republican state senator who argues the focus on gas stations misses broader issues driving up costs.

Asm. Joe Patterson

A Republican state assemblyman who says blaming local businesses overlooks the impact of state policies.

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What they’re saying

“We don't want to see anybody in the marketplace taking advantage of this moment to jack up prices and artificially inflate their profits.”

— Tai Milder, Director, Division of Petroleum Market Oversight

“Governor Newsom and the Legislature established the Division of Petroleum Market Oversight in 2023 as the nation's first independent watchdog agency overseeing the oil and gasoline industry. The Governor appreciates all of DPMO's work to protect consumers from price gouging and price manipulation during Trump's crisis.”

— Spokesperson for Gov. Newsom

“The governor and others have continuously vilified the oil companies.”

— Sen. Roger Niello, Republican, Fair Oaks

“Trying to blame things on gas station owners, rather than the policies that they're implementing themselves.”

— Asm. Joe Patterson, Republican, Rocklin area

What’s next

The DPMO says it will continue to monitor gas prices across California and have conversations with station owners to understand the reasons behind the price hikes. The agency has the authority to penalize oil companies for excessive profits, though that enforcement component has been delayed.

The takeaway

This investigation highlights the importance of having an independent watchdog agency to oversee the oil and gas industry and protect consumers from potential price gouging, especially during times of market volatility. However, some lawmakers argue the focus should be on broader policy issues driving up costs rather than just blaming individual gas stations.