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Motorists Sue Over 'Hot' Fuel

i_like_spam writes "Motorists in 13 states have filed lawsuits against big oil companies and gas retailers alleging unfair pricing practices related to fuel-pumping temperatures. From an industry standard developed in the 1920's, the price for a gallon of gasoline is based on the density of the fuel at a temperature of 60 degress F. A gallon of gas at higher temperatures is less dense, and therefore contains less energy. The lawsuits claim additional costs of 3 to 9 cents per gallon without temperature adjustments. The fuel industry claims that the costs of installing temerature-adjustment sensors on every pump would be prohibitively high. These sensors are already installed in Canada, however, where the colder temperatures favor consumers."

41 of 572 comments (clear)

  1. Of course it would be prohibitively high by ChronosWS · · Score: 4, Insightful

    Because not only would they have to pay for the cost of the installation, but then they'd lose money due to the metering changes based on temperature. Then again, it's not like THEY pay for it. We do.

  2. Prohibitively high by Skidge · · Score: 2, Insightful

    The fuel industry claims that the costs of installing temerature-adjustment sensors on every pump would be prohibitively high.


    It might be the case where it really is prohibitively high, if it's the gas station owners that would be paying for it. They sell the gas at very thin margins, making more money on bags of chips and bottles of water.
  3. Should be quite easy to do by EmbeddedJanitor · · Score: 5, Insightful
    Gas is mainly stored underground in reasonably stable temperatures. A daily measurement should be good enough.

    Sure there's a small amount of gas (probably less than half a gallon) above ground in the pump that will warm and cool relatively quickly but since it is only half a gallon who really cares?

    --
    Engineering is the art of compromise.
    1. Re:Should be quite easy to do by i_like_spam · · Score: 4, Insightful

      Yeah, it's stored in pressurized, insulated tanks underground, which will buffer the gas from temperature fluctuations. For this reason, I think that the lawsuits won't get too far.

      But, the recent Congressional testimony on this topic and the multiple lawsuits in many states (some of which are class action), makes me wonder if there's something more to the story.

    2. Re:Should be quite easy to do by Moofie · · Score: 2, Insightful

      I know that this is hard to understand, but perhaps America is populated by more than one human, and can therefore have two or more sets of values that are not consistent, but are also not contradictory? Do you think that's possible?

      --
      Why yes, I AM a rocket scientist!
    3. Re:Should be quite easy to do by NoisySplatter · · Score: 2, Insightful

      But thats just creating more work for everyone, and only the first person actually gets any more gas. The hose was full when he started, so really he only paid for the gas that shot out the end. For him to then empty the hose, means that the next person would have to pay to fill the hose before they would even receive the benefit of gasoline. Once they were done filling the tank if they didn't empty the hose they would have paid to fill the hose for the nest selfish asshole that fills up and thinks he paid for the gas in the hose that was already there.

      --
      In Soviet Russia meme tires of you!
  4. That would be why by VirusEqualsVeryYes · · Score: 3, Insightful

    These [temperature] sensors are already installed in Canada, however, where the colder temperatures favor consumers.
    ...which would be why they are installed.
  5. Easy Fix by Ansible42 · · Score: 3, Insightful

    Just make the standard at 100F instead of 60F, then temperature sensors will be all the rage, as they apparently are in canada.

  6. temp sensor by SolusSD · · Score: 2, Insightful

    Seems to me all that would need to be added is a temperature sensor. Then all they would have to do is lower the cost of gas when the gas is significantly hotter than 60 degrees.

  7. Common Sense/Observation != Science by thesandbender · · Score: 4, Insightful

    I grew up around big oil. Wells, refineries, etc. and I've heard this premise more than once. On the surface, it makes sense but it doesn't hold up in practice. There are really two problems with this theory:

    1. (the most important) gasoline tanks are buried 10+ feet under ground. They don't experience the same temperature fluctuations that the surface does. The temperature of the tank can easily be 15-20 degree below ambient air temperature or more. Also, it doesn't fluctuate as much.

    2. In the vast majority of the country, the *average* weather nullifies this. Even in Texas, where I grew up, a lot of the state averaged 40-50 for a few months out of the year. In New York, where I am now... the *average* daily temperature breaks 60 for a few months out of the year. Average is important. If it's only above 60, even 70, for a few hours out of the day that will have *no* effect on the tank which is sitting comfortably at 50 or so. So yes... a few months out of the year you're paying more for gas. But a few months out of the year your also paying *less* for gas and most of the time you're breaking even.

    I can see this being a valid argument in AZ, Southern NV, AZ... places that are at 100+ right now. But everywhere else in the country it's just someone else trying to get something for nothing.

    You also have to bear in mind that this is going to hurt the station owners, not the petroleum companies. In some cases the petroleum companies own your local gas station (usually only in high profit locations) but most of them are licensed by franchises (still private individuals) or independent owner/operators and they will end up eating the cost of the equipment. Not "big oil".

    I'm not a shill and I actually don't care for big oil at all... but this is just a stupid lawsuit. Sue them for not pursuing alternative energy. Sue them for not upgrading to more efficient and clean refineries. Sue them for not managing their waste products.

    This is just a petty waste of time and doomed to failure.

    1. Re:Common Sense/Observation != Science by afaik_ianal · · Score: 2, Insightful

      Not necessarily. Petroleum companies have a bunch of costs in delivering petrol to you. There's the cost of the oil, the cost of refining it and the cost of transporting it. Then there's spillage along the way, theft, and contraction of the petrol at the pump.

      If the sole reason for installing the sensors was to compensate for contraction losses, then why would they bother installing the equipment when they could just do what they do to cover all their other costs? That is, they could just change their prices.

      I don't know why they install them in Canada, but I'm guessing it's not only a cost recovery exercise.

  8. Re:Evidence of efficient markets by Anonymous Coward · · Score: 1, Insightful

    A free, competitive market is of no use to you if you don't compare prices. To compare prices, you need to know the volume of fuel sold as a "gallon".

    Or, did you really mean to say, that it's great the oil company bothers to steal a penny a gallon from me, it implies that some other kind soul (Walmart ?) cares enough to toss a few cents my way every now and again ?

  9. yeah, it's too expensive by hxnwix · · Score: 3, Insightful

    Yeah, it's too expensive because it would cost the oil companies a lot of money.

    What they did there is pretty clever, eh?

  10. I am appalled! by fermion · · Score: 1, Insightful
    The oil companies must compensate us from losses due the energy fluctuations in their products due to weather. They must sell us gasoline by the energy it contains, not gallons. Not only that, they must take into account the differences of effeciency. So if we buy gas when it is 60F, with a maximum carnot efficiency of 75%, then we should pay at most 75% of the stated price. When the temperature is 100F, we should only pay 50 cents on the dollar.

    But lets not waste time on all these diversionary tactics and go straight for what people really want: a per mile charge. Lets say that everyone jsut pays 25 cents for each mile they drive. This will save the junk-status american car company executive from having to come up with an original idea in exchange for their 8 figure incomes. The populous can get what it want, huge cars that they can't afford to maintain, and oil companies can get what they really want, direct huge no-string subsidies and the right to drill anywhere they want, also at the taxpayers expense.

    Or we could just keep the entire thing simple. We could drive cars and distances that are within our means. The US congress could rescind the dole payments given to the oil companies by so-called conservative politicians. The added tax receipts could be used to hold down the deficiet instead of buying yachts and servants, servants, who, BTW, are evidently better paid than the average American, for the uber-wealthy. Really, in my dream world, we would not be owned by the Chinese, and have the ability to set trade policy on our own terms, and not fight these proxy battles to keep them from dumping out dollars of decreasing worth in favor of euros.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
  11. Always trust what a business says by suv4x4 · · Score: 4, Insightful

    The fuel industry claims that the costs of installing temperature-adjustment sensors on every pump would be prohibitively high. These sensors are already installed in Canada, however, where the colder temperatures favor consumers.

    Nutrasweet is harmless! (i.e. cheaper than sugar!)

    IE is an integral part of Windows! (wait.. it's not yet... wait.. wait.. wait.. aaahh! now it is. congrats!)

    We can offer better price and services as a single huge telecom monopoly, don't split us up! (we'll kinda merge later anyway)

    Piracy causes tremendous losses to our industry! (we know this, since whatever our profits, we think they should've been 4 times that!)

  12. Re:Congressional testimony on Hot Fuels by Anonymous Coward · · Score: 5, Insightful

    Finally, were talking a couple of percent difference in energy per gallon here. Don't people suppose that their cars efficiency might also vary by a several percent with ambient temperature?

    People in the United States buy around 350,000,000 gallons of gas every day. Even if the temperature difference accounts for only one tenth of a percent, that's about 350,000 gallons a day. Or $1.1 million a day at $3.15 a gallon. Pocket change to an oil company, but most people would appreciate the slightly lower gas prices.

  13. Re:Competition by Cadallin · · Score: 3, Insightful

    No. See http://en.wikipedia.org/wiki/Collusion. There is no competition amongst oil producers, because OPEC controls a good 80+% of the supply. The competition only exists between different gas stations (although most of those are owned by OPEC puppets as well) where the small family owned gas stations (there are a couple out there) get squeezed for every last penny.

  14. "Motorists" in 13 states means "Lawyers" by SashaMan · · Score: 4, Insightful

    Great, so as a motorist, if I win as a member of this class action lawsuit, I'll maybe get a coupon for $5 of gas, while the lawyers will get tens of millions. I can't wait.

  15. Re:Congressional testimony on Hot Fuels by Kadin2048 · · Score: 2, Insightful

    Actually I think people are. I know people who shop around for gas and pay attention to price differences that are only a few cents.

    If you're filling up once or twice a week, it's possible for the seemingly small savings of a few cents a gallon to add up.

    (Of course it's stupid to drive across town for gas that's only a few cents cheaper, but it's not stupid to notice gas that's cheaper and fill up if you're below 1/2 a tank or so whenever you see it and when time permits.)

    --
    "Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."
  16. Go Higher Gas Prices! by stewbacca · · Score: 5, Insightful

    I'm I the only American on the planet rooting for higher gas prices in the US? Higher gas equals less SUVs and trucks which equals less congestion. I live in England now, and $7.50 gallon gas is the norm. Get over yourselves already America.

    1. Re:Go Higher Gas Prices! by Lumpy · · Score: 4, Insightful

      I used to root for the higher prices to put the pinch on those soccer moms and other idiots tht think they NEED a 7 foot wide 14 foot long vehicle to drive alone in.

      But a reality kicked in. The poor only can afford the throw away from the rich. Right now the poor are sucking up the SUV's because they are all over the place at the $1500-$3900 price tag, which is all the car they can afford. The efficient cars like the older GEO metro the VW TDI and others are not selling for such low prices (I just sold a 3cyl Geo metro on Ebay for $6500.00 Bluebook is $3500) as the middle class are sucking them up off the used market.

      So if Gas goes up it only punishes the poor. The rich and middle class like to bitch about it but it really does not affect them one tiny bit. The poor and working poor are those it hits incredibly hard as they cant afford a car that get's > 20mpg cant afford to have their car's in perfect running condition, and cant afford things like Low rolling resistance tires to beef up their cars economy (I have a 2001 Aztek, after a few modifications I am getting 28mpg.).

      Soaring gas prices are simply extending the gully between rich and poor. Rich dont care, middle class bitch but really dont care as they are not selling their H2's or Surburbans to get smaller cars...

      It's the poor that care. if the price were to increase enough it will make the difference between eating meat and dairy this week so daddy and mommy can get to work.

      --
      Do not look at laser with remaining good eye.
    2. Re:Go Higher Gas Prices! by Paulrothrock · · Score: 2, Insightful

      So cut payroll taxes so people can get food, but we need people to snap up high-mpg cars.

      --
      I'm in the hole of the broadband donut.
    3. Re:Go Higher Gas Prices! by despisethesun · · Score: 2, Insightful

      I'm just stumped as to why these working poor can't take the bus. I know that this isn't an option for rural areas, but for those living in cities it's definitely an alternative. Even in the city I live in, the transit system is woefully underfunded and inefficient, but it will still get me just about anywhere in the city with connecting buses to the surrounding communities. If a $150/month car payment plus insurance and gas is too much money, it might be time to look at a bus pass. Bicycles are also cheap (my gf just bought a fairly nice one for $250 Canadian, new), though they're not practical in some places year round. I use mine all the time in the summer to offset the price of gas for my V8 muscle car, which is a fun ride but not terribly economic.

      --
      This poo is cold.
    4. Re:Go Higher Gas Prices! by Lumpy · · Score: 3, Insightful

      Most of America has little to no public transportation. That is why. americans think the bus and trains are "icky" and therefore don't get them built.

      Completely stupid, I know. but it's a fact.

      My daughter to take public busing to school has to leave 2 hours early, have to do a transfer in the worst part of town where you dont dare have a 14 year old white girl alone, and then get to school with only 5 minutes to get to classes. If she leaves 3 hours early she will have to wait for the school to open and let kids in 20 minutes before class, Winter storms preclude my letting a child stand outside a school for 40 minutes in the storm. Then she has the same trip home but it's 4 hours because the bus shows up at her school 15 minutes before classes let out and has to wait an hour for the next one. The busing company refuses to adjust route times for the school.

      Most public busing is set up retarded like that. Cities look at busing as a nuisance and try to make it as crappy as possible.

      --
      Do not look at laser with remaining good eye.
  17. Re:Congressional testimony on Hot Fuels by ptbarnett · · Score: 5, Insightful
    This is precisely because the proper metric for the determination of the energy content of a fuel payload is the mass of the fuel rather than the volume of the fuel.

    No, it's because the weight of the fuel is a significant factor in calculating the gross weight and the center of gravity of the aircraft.

  18. Re:Station owners in a free market economy by Hal_Porter · · Score: 2, Insightful

    Of course, their margins are already quite slim, and successful gas stations are not operated by fools. Therefore, if the cost of dispensing "One Temperature-Compensated US Gallon" rises above that of "One Old-School Volumetric US Gallon," then they'll just unilaterally increase prices to compensate, by whatever amount the market will bear.

    Actually that makes you realise how absurd the complaint is. If you buy gas by volume don't complain that the mass of gas you get varies with temperature. That's just physics.

    --
    echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;
  19. Re:Congressional testimony on Hot Fuels by node+3 · · Score: 5, Insightful

    I find myself extremely skeptical. fuel tanks are usualy fairly far underground. buried tanks are going to be fairly near isothermal and the ambient temperature is not going to change the temp very much on it's short trip to the tank. The question isn't whether the temperature stays the same, but whether the temperature the gallon is measured at matches a reliable, established, standard, which TFA claims it doesn't.

    If anyone is getting ripped by this, it's the independent fuel stations. In other words: if someone else is getting ripped off worse, then the person getting ripped off less can't complain?

    Finally, were talking a couple of percent difference in energy per gallon here. Don't people suppose that their cars efficiency might also vary by a several percent with ambient temperature? So, then it's perfectly fine to be overcharged so long as something entirely separate affects efficiency after the sale?

    Finally, the station sells gas by the gallon not by the BTU. No one said it was. What is claimed is that it's sold by the gallon, with the gallon being defined as at a certain temperature. Or do you buy your produce "by the pound", but allow the grocer to define the gravity it's measured against?

    Tell you what, if you *truly* believe your arguments are sound, I'll sell you pound of gold (based on Jupiter's gravity), measured at prices defined against Earth gravity. You shan't complain because I'll sell the same amount of gold to someone else at Moon-measured pounds. And just to be fair, I'll measure the gold I sell you at a constant, "isojupiterpound" level. And even if you *do* think you still have grounds to complain, I'll remind you that there are other factors that will affect the value of the gold you're buying, not just the gravity I measure the pound against. Besides, you're buying by the pound, not the gram, and even if I get to choose the gravity, these measurements are all pounds, aren't they?
  20. Who should be asking, "How high?" by macraig · · Score: 2, Insightful

    The sage advice has always been to buy gas before 10am. Of course, being forthrightly compensated for warmer less dense fuel would be better. As Michael Moore repeatedly suggests in his new movie - and this is rightly the subtitle of the movie - it's long overdue for Americans to be MORE like the French and make our government and corporations afraid of us rather than the other way around. It's the French (and Canadian)people screaming "Jump!", and the French guv'mint and big biz meekly asking, "How high?"

    Sorry about the movie spoiler. Or not.

  21. Don't count your chickens too soon. by Shivetya · · Score: 2, Insightful

    Because Hybrid technology will preserve, if not exaggerate, the number of larger vehicles on the road. GM is coming out with hybrid TAHOEs and other large vehicles. Not the fake hybrids of the previous generation but real hybrids.

    As the tech advances even large vehicles will get better mileage than many midsize cars of these days and as such people will have even less inclination to buy a baby car.

    Also, whats wrong with SUVs and trucks? Many familes can afford two cars and one has to pull double duty. Own a home and loading garden supplies into your civic isn't going to cut it. Want to pull a boat or trailer (we are allowed to go on vacations aren't we???) and your little car won't cut it.

    Honestly all the SUV/Truck hate is misplaced. It comes down to perception, you only get to see how someone else uses a vehicle how much each day? 15 minutes or so on the expressway? So the wife/husband drives the SUV to work by themselves, when they get home its hauling kids, the dog, going on camping trips, taking the neighbors kids to the ball game, etc... you don't see that yet in your selfish world you still want to pass judgement.

    Look, quit trying to guilt America. People like you need to GET OVER YOURSELVES. This is a free society and as such people should be free to do as they please provided it does not deprive another of life and liberty. Just because you cannot justify a SUV for yourself or someone else does not mean they cannot justify for themselves. They know their needs you do not.

    So, grow up and realize you don't know everything, let alone everyone.

    --
    * Winners compare their achievements to their goals, losers compare theirs to that of others.
  22. Re:Congressional testimony on Hot Fuels by MightyYar · · Score: 2, Insightful

    But the price that the gas station charges is only slightly related to the cost of the fuel. The price of gas down the street is more likely to be a factor. If you make them start compensating for temperature, they will just hike the price. This whole thing is silly unless you find one station with warmer gas than another, giving them an unfair advantage.

    Retail gas is not a money maker - the little convenience store is what makes money.

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  23. Re:Congressional testimony on Hot Fuels by AlecC · · Score: 3, Insightful

    Both are right, but the previous point is, IMO, more right. The amount of flying you can do depends upon the mass of fuel loaded and then the mass burned. Even before the plan has built, the Specific Fueld Consumption of the engines is specified in thryust generated for mass flow of fuel.

    --
    Consciousness is an illusion caused by an excess of self consciousness.
  24. Re:Am I missing something? by Mr2001 · · Score: 2, Insightful

    Yes, you're missing something. The point is, you're buying less gas but paying the same total amount, because it's sold by volume, and the same volume holds fewer molecules of gas when it's warmer.

    You're right that this reduces the range of your vehicle and causes you to hit the gas station more often, but it also makes driving more expensive overall. At $3 a gallon, it costs $30 to fill up your 10-gallon tank each time, no matter how dense the gas is. If it's 1% less dense than it should be, then you're spending 1% more to drive the same number of miles, because you have to fill your tank 1% more often.

    Fuel injectors can compensate for the gas in your tank getting hotter, and adjust themselves to deliver the same number of molecules of gas to the engine at any temperature. But they can't change the fact that you were charged for more molecules than you actually put into the tank.

    --
    Visual IRC: Fast. Powerful. Free.
  25. As some who used to sell software to retailers . . by PeeAitchPee · · Score: 3, Insightful

    . . . I can tell you that the c-stores are much more interested in making sure they don't run out of gas. Fuel and cigarettes have become commoditized to such a point that retailers can't grow their business with the stuff anymore and are actually expanding through things like newer, larger store formats and food service programs. I never heard anyone making a big deal out of temperature fluctuations -- the retailers certainly don't gain / lose significant amounts of money because of it.

    They are, however, very concerned with having a tank run out -- meaning they can't sell any gas, period. Typically, they already have in-tank sensors for fuel levels, even on moldy old pre-IP equipment. I was onsite at an install last December at a rather large store and this happened for about 15 minutes -- the forecourt controller went down and had to be rebooted -- and *everyone* in the store dropped what they were doing and attended to the problem. The retailers' margins are razor-thin with fuel so they have to make money by selling a ton of it -- and they can't do that when they don't have any or when the dispenser-related equipment is down.

  26. Re:Hello!!! by Fantastic+Lad · · Score: 2, Insightful
    As long as we in this country worship at the altar of the almighty dollar, and sell our government to the highest bidder, expect no different. Again, your choice... always has been, always will be.

    Unfortunately, the only way to go about making any radical changes at this point is to physically drag out the entire ruling elite and their political dogs and hang them. This tends to lead to decade or more of civil war and strife, and people hate that. It's so uncomfortable. So things have to get really bad before they resort to it, at which point all the ruling elite flee to England to wait out the unrest while the people tend to get strange and hang and mutilate each other in their frenzy for revenge.

    Humans are a weird and disturbing species.

    I think the best way to manage is to simply not play the game. There are lots of ways of living a happy and selfless life while ignoring the rules placed down by the Military Industrial Complex.

    But you have to educate yourself first. Find out how you're being screwed with before you can avoid being screwed.


    -FL

  27. Re:Congressional testimony on Hot Fuels by DrSkwid · · Score: 4, Insightful

    because transporting 30kg of extra fuel around is free

    --
    There are places where the networks are not touching,and there are places where they are-Boeing's Lori Gunter
  28. Re:Congressional testimony on Hot Fuels by maxume · · Score: 2, Insightful

    People drive with maniac leaden feet. Some people don't, but the ones worried about less than 1% of their annual gas use probably do. So their words say that they care, but not their feet.

    --
    Nerd rage is the funniest rage.
  29. Simple solution by DrSkwid · · Score: 2, Insightful

    Sell it by the kilo

    --
    There are places where the networks are not touching,and there are places where they are-Boeing's Lori Gunter
  30. Re:Congressional testimony on Hot Fuels by Anonymous Coward · · Score: 1, Insightful

    OMGPONIES!

  31. Re:Congressional testimony on Hot Fuels by FatAlb3rt · · Score: 3, Insightful

    And those people are typically idiots. Sorry, this is one of my pet peeves. I've seen lines at the grocery store across the street selling their gas for 3 cents cheaper. You save less than a dollar on a tank of gas. And they grab a 16oz Coke on the way out for $1.29. So not only did they have to wait for 10 minutes to fill the tank to save 75 cents, but they pissed the savings away in a Coke. Worse yet, a Starbucks coffee.

    There's much more efficient ways to save money than shopping around for gas. [stepping down]

  32. Re:Congressional testimony on Hot Fuels by bkr1_2k · · Score: 4, Insightful

    They didn't "piss away the savings" on a Coke, they made an additional, completely separate purchase with money they wouldn't have had otherwise. Just because it's not how you would choose to spend the money doesn't mean it was pissed away.

    People rarely consider their own time when figuring the cost of things, so it's no surprise that the 10 minutes spent waiting is completely overlooked.

    --
    "Growing old is inevitable; growing up is optional."
  33. Re:Congressional testimony on Hot Fuels by AndersOSU · · Score: 3, Insightful

    've seen lines at the grocery store across the street selling their gas for 3 cents cheaper. You save less than a dollar on a tank of gas. And they grab a 16oz Coke on the way out for $1.29

    Which is precisely why stations with large shops have the cheapest gas. The margins on gas are razor thin, and most stations make their only real profit in the convenience stores. Some stations even price the gas as a loss-leader to get people into their store. (Which is also why I never buy anything at a gas station, unless I absolutely have to - like if I'm on the turnpike).

    This phenomenon, got me thinking, on the east coast, many states only sell beer in liquor stores, whereas in the midwest damn near every store has a license to sell beer. I wonder how much we could decrease the cost of gas on the east coast simply by offering beer/wine liquor licenses to gas stations. In the end it is probably revenue neutral, but some politician could claim that he reduced gas prices a couple of cents.