Costco Settles ‘Fair Fuel’ Lawsuit
NEW YORK, NY — Costco last week agreed to settle a lawsuit over the
sale of hot gasoline — gasoline above 60 degrees that expands, but is
not accounted for at the pumps, resulting in consumers receiving less
gasoline than they pay for.
According nonprofit, nonpartisan organization Consumer Watchdog, Costco will be the first U.S. gasoline retailer to do so.
”This is fantastic news for consumers,” said Judy Dugan, research
director of Consumer Watchdog. “Costco is taking the lead in offering
drivers gasoline that has the same amount of energy in every gallon,
living up to its reputation as a consumer-friendly place to shop.”
According to the group, for every 15-degree rise in temperature, 1 percent of the fuel is lost to expansion.
Costco will install temperature-sensing pumps that slightly adjust the
amount of fuel to same energy content in each gallon. The agreement
affects Costco motor fuel sales in Arizona, California, Florida,
Georgia, Kentucky, Nevada, New Mexico, North Carolina, Tennessee,
Texas, Utah and Virginia. The deal, if fully approved, would go fully
into effect within five years.
The deal, if finalized, will remove Costco from national and state
class action lawsuits by drivers — and by truckers, who can lose
hundreds of dollars to hot fuel each year.
Today’s action is just the first big step toward a final settlement
involving Costco, and will likely face ferocious opposition from oil
companies and bigger name-brand refiners and retailers, said Consumer
Watchdog. The fuel lobby this month pushed Virginia legislators into at
least temporarily banning temperature-adjusted sales.
”Oil and fuel lobbyists who try to intimidate state and national
regulators into stopping Costco will be trying to make fairness
illegal,” said Dugan. “This is the rear-guard action of an industry
that is already seen as completely untrustworthy.”
Listen to Consumer Watchdog’s podcast about Costco’s move here.