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DPMO analysis flags 41¢ average "mystery gasoline surcharge" since 2015, finds branded stations carry biggest share
Summary
The Division of Petroleum Market Oversight told the Assembly committee that, after accounting for taxes and environmental programs, Californians have paid an unexplained premium averaging about 41¢ per gallon since 2015. DPMO tied part of that gap to market structure, greater vertical integration and higher branded station markups.
SACRAMENTO — The Division of Petroleum Market Oversight on Oct. 26 presented new economic analysis to the Assembly Committee on Utilities and Energy that replicates academic work and finds an unexplained retail price gap — which the agency calls a “mystery gasoline surcharge” (MGS) — averaging roughly 41¢ per gallon in California since 2015.
“My calculation…is that Californians have been paying 41¢ per gallon extra for every gallon of gasoline sold since 2015,” DPMO Director Ty Melder told the committee, citing in‑house work validated with outside economists. He said spikes in the MGS reached $1.32 during the late‑2022 price events.
DPMO’s findings summarized
- Mystery surcharge: DPMO’s economists estimated an average unexplained premium of about 41¢/gal since 2015 after controlling for…
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