Oil Watchdog

Santa Monica, CA — Many Mobil and Exxon stations in California have
begun posting small signs on each pump, calling it a "Motor Fuel
Measurement Notice." The stickers, warning that the energy content of a
gallon of fuel varies with its temperature, acknowledge that consumers
are being ripped off, said the Foundation for Taxpayer and Consumer
Rights.

The nonprofit, nonpartisan FTCR said the stickers are a strategy
to fend off "hot fuel" lawsuits and allow the ripoff to continue.
However, the foundation noted that either a current class action
lawsuit or federal legislation to require temperature compensation of
retail fuel may force oil refiners fix the problem.

"ExxonMobil, America’s most profitable corporation, owes
drivers more than a cheap sticker in tiny print," said Judy Dugan,
research director of FTCR and its OilWatchdog.org project. "The company
has funds that it uses to help dealers with infrastucture, and which
could be used to buy nozzles that adjust fuel volume for higher
temperatures."

Newly introduced legislation in the Senate (S. 1997), by Sen. Claire
McCaskill of Missouri, would require gasoline and diesel to be sold
adjusted for temperature, giving motorists a fair gallon’s worth of
energy for their money. (See information on the legislation here.)

"Consumers and lawmakers are increasingly aware that there is a
thumb on the scale when they buy gasoline, even though they have no
fairer alternative for purchasing it," said Dugan. "The Senate’s hot
fuel bill is a warning oil companies, refiners and distributors of
gasoline that they can either make gasoline sales honest themselves or
be forced by the courts or government to do it."

Gasoline, especially in the summer, expands as its temperature
rises. But fuel is sold by volume at a benchmark of 60 degrees, so
drivers are paying for "ghost gas," the lost energy content of a gallon
at any temperature above 60 degrees. At other parts of the supply
chain, the gasoline is sold temperature-adjusted, meaning slightly more
gasoline is provided at higher temperatures.

The year-round temperature of fuel at the pump in California
averages 74.5 degrees, and higher in summer. The national average is
64.7 degrees, according to a study by the National Institute of
Standards and Technology. At $3.00 a gallon, and with fuel at 75
degrees, motorists may lose 50 cents or more per tankful to "ghost
gas." (Click here for more information and background on "hot fuel".)

ExxonMobil said that it would put stickers on its pumps at
stations in California and Arizona. A survey of six stations in Los
Angeles and Santa Monica, however, found the stickers only at
Exxon-owned and franchised stations, not at independently owned but
branded Exxon and Mobil stations. (Click here for the original announcement.)

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The Foundation for Taxpayer and Consumer Rights (FTCR) is
California’s leading nonpartisan consumer advocacy organization. For
more information, visit us on the web at: www.ConsumerWatchdog.org and www.OilWatchdog.org.