Drivers launch lawsuit against fuel stations over 'astronomical' petrol and diesel prices

Several of the most popular fuel stations in the United States are the target of a lawsuit amid claims that artificial intelligence was used to hike prices for drivers.

A new lawsuit filed in California this week accuses fuel station operators of using AI to send costs soaring for motorists.

The proposed class action lawsuit claims that the defendants violated California's main antitrust law - the Cartwright Act.

It argues that an AI-based tool used data from competing petrol stations to "coordinate high prices and wring more money from the pockets of consumers".

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The lawsuit alleges that the AI tool violated Assembly Bill 325, which was only introduced at the start of the year.

It aimed to crack down on algorithmic price fixing, which included competitor information as an input, according to Reuters.

Claims included in the lawsuit alleged that fuel prices jumped by as much as 30 cents (23p) per gallon in areas where the AI tool was used.

The complaint claimed that each cent added to the cost of fuel paid by drivers in California added an extra $134million per year (£101.5billion).

It states that fuel prices were forced up to "astronomical levels", potentially even as high as $7 a gallon (£5.30).

The complaint added: "While families struggle to afford the commute to work, defendants have conspired to put an end to competition, joining an AI-powered trust to ensure that no matter where a ⁠driver turns, the price for gasoline is artificially high."

Some of the largest fuel station operators were featured in the lawsuit, including global brands and popular American supermarkets.

Data from the AAA Gas Prices index shows that drivers in California pay the most for their fuel of any US state.

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An average gallon of fuel in California today costs $5.56 (£4.21), compared to the national average of $3.93 (£2.98).

Since the outbreak of war in the Middle East, fuel costs have soared across the world as Iran blocked access to the crucial Strait of Hormuz, through which one-fifth of oil flows.

Diesel prices reached their all-time high in California on April 9 earlier this year, when prices soared to $7.75 (£5.87) per gallon.

In comparison, drivers in Indiana are paying substantially less than the rest of the country, with an average price of $3.32 (£2.51).

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