Oil Watchdog

Santa Monica, CA — A Congressional study finds that motorists
nationwide will be cheated of $1.5 billion over the summer driving
season because they’re buying "hot fuel," said the Foundation for
Taxpayer and Consumer Rights. A Congressional subcommittee is holding
hearings today on this overpayment, possibly leading to federal
regulations that would measure gasoline temperature at the pump and
provide motorists with a fair measure of gasoline for their money.

"The report shows that motorists will pay $1.44 extra for
every fill-up when gasoline going into the tank reaches 90 degrees,
which is common in summer," said Judy Dugan, research director of
OilWatchdog.org and FTCR. "This sleight of hand perpetrated by oil
companies, distributors and dealers is part of the dishonesty and
profiteering that permeate the gasoline business."

The overpayments just for the summer months will amount to
$228 million for California drivers, the study found. The Kansas City
Star, which conducted the original investigation of the "hot fuel"
issue, reported yesterday on the study, prior to its release later
today. Read the story here.

The story concisely explains the problem:

"The physics of hot fuel are fairly simple. Fuel expands and
contracts depending on temperature. At 60 degrees, the 231-cubic-inch
U.S. gallon puts out a certain amount of energy. But fuel is often sold
at much hotter temperatures, causing the fuel to expand and the amount
of energy, for each gallon of volume, to decrease.

"At other stages in the fuel-delivery chain, the
industry routinely adjusts volume for temperature change. But retail
pumps in America make no adjustment for changes in the volume caused by
temperature, so consumers get only 231 cubic inches per gallon,
regardless of temperature."

Today’s hearing before the House Domestic Policy subcommittee,
led by Rep. Dennis Kucinich, questioned oil industry and dealer
representatives about the deliberate overcharging.

Earlier studies found that the year-round cost of hot fuel to
consumers, at current gasoline prices, is $2.3 billion nationally and
at least $450 million in California, where temperatures year-round are
higher. Gasoline in Canada is almost universally sold through pumps
that measure temperature going into the tank. Oil companies and dealers
benefit from this measurement in Canada, where gasoline is on average
under 60 degrees Fahrenheit, said FTCR.

"The refining and distribution industries lobbied for
temperature measurement in Canada by saying that any other method would
be dishonest," said Dugan. "In the U.S., they are trying to prevent
temperature measurement because honesty would dip into their profits."

Gilbarco Corp., a manufacturer of temperature-adjusting
gasoline nozzles, briefly said it would sell them in California this
spring, then withdrew the offer under apparent pressure by gasoline
distributors. FTCR has asked state Atty. Gen. Jerry Brown to
investigate the withdrawal and the wider issue of hot fuel.

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Click here for more information on hot fuel.