California’s Division of Petroleum Market Oversight (DPMO) has issued a market update and consumer advisory in response to rising gasoline prices and tight market conditions expected between September and November 2025. The agency anticipates a reduction in in-state production during this period, based on information from transparency and reporting tools provided by the Legislature.
“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 2025, retail gasoline prices increased after an incident at the PBF Energy refinery in Martinez. This led to three significant price surges on California’s spot markets, where wholesale gasoline is traded. Prices later stabilized as imports of gasoline and blending components consistently surpassed 170,000 barrels per day.
DPMO is collaborating with the California Energy Commission (CEC), other state agencies, and petroleum industry members to minimize potential impacts of both planned and unplanned refinery maintenance on consumers.
The agencies are also monitoring factors that can influence gasoline prices such as possible import tariffs, additional refinery outages, weather events, and national futures market trends.
Since August 15, retail gasoline prices have risen by about 16 cents per gallon, with Southern California seeing the largest increases. The spot market has shown volatility during this time frame, while forward market prices remain elevated for the coming months.
As gas prices climb, DPMO advises Californians to compare prices between name-brand and unbranded gasoline retailers. Although branded fuel typically costs more, all gasoline sold in California must meet strict emissions control and engine performance standards set by the state.
The Division of Petroleum Market Oversight operates independently within the California Energy Commission. It is responsible for oversight, investigations, economic analysis, and policy recommendations related to transportation fuels. The agency was established under Senate Bill X1-2 during a special legislative session in 2023 as part of efforts to increase transparency in gas pricing.
