California’s Petroleum Watchdog Issues Market Update and Consumer Advisory Amid Rising Gas Prices and Tight Market Conditions

For Immediate Release: September 16, 2025

SACRAMENTO - Today, the Division of Petroleum Market Oversight (DPMO) released a letter to Governor Gavin Newsom and state legislative leadership providing an update on the gasoline market and a look-ahead through the rest of 2025.

Based on multiple sources, including key transparency and reporting tools provided by the Legislature in the past two years to shed light on refinery maintenance activities, DPMO expects in-state production to be reduced 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 this year, retail gasoline prices rose following an incident at the PBF Energy refinery in Martinez. Price increases were associated with three significant run-ups on California's spot markets, which is where wholesale gasoline is traded. Prices stabilized in late spring and summer 2025 as imports of gasoline and blending components regularly exceeded 170,000 barrels per day.

DPMO is working with the California Energy Commission (CEC), other state agencies, and members of the petroleum industry to limit the potential impacts that planned and unplanned refinery maintenance may have on consumers.

DPMO and CEC are continuing to monitor additional variables that impact gasoline prices, including potential import tariffs, other planned and unplanned refinery outages, weather events, and trends in the national futures market.

Since August 15, retail gasoline prices have risen by approximately 16 cents per gallon, with the most marked increases in Southern California. The spot market has experienced some volatility during this period, and prices on the forward market - where market participants trade gasoline for future delivery - are elevated for the next several months.

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.

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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.