Oil Companies Are Using a Simple Trick to Bilk Consumers out of Billions

By Brian Beutler, Media Consortium. Posted August 14, 2007.

Oil companies know that gasoline expands at higher temperatures and has less volume at lower ones, but they've refused to upgrade gas stations with a simple tool that would adjust the price of gas according to its temperature.

It's probably intuitive to most people that the gasoline in their fuel tank expands in the heat -- just like doorframes and cookware and everything else on the planet. What's probably less intuitive is that, in the United States, this physical phenomenon pumps a nearly $2 billion annual windfall out of consumers' pockets and into oil company coffers, according to numerous calculations, including a recent House of Representatives study.

The North Carolina-based company Gilbarco Veeder-Root manufactures a device -- a temperature-sensitive chamber for fuel -- that, if affixed to gasoline pumps across the country, would return that money to consumers and help relieve some of our storied gas-price pressures. The device -- and others like it -- is simple, functional and, in fact, already in widespread use at gas stations all across Canada. Last month, Democratic presidential hopeful and Ohio Rep. Dennis Kucinich, chair of the Domestic Policy Subcommittee, held the second in a series of hearings to investigate why the technology has never made it into the American market.

[...]

the idea of correcting price for temperature has deep roots in the industry: oil companies have done so for gasoline wholesalers for nearly a century. The only ones in the North American energy chain who pay by volume rather than by energy value are U.S. consumers.

[Emphasis added. Continue reading from other press]


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Re; Hot fuel

During the past ten years I have attempted, unsuccessfully, to draw attention to the need for automatic temperature compensation (ATC) of motor fuels sold to Arizona motorists. A link to this Web site: http://www.users.qwest.net/~taaaz/AZgas.html has on several occasions over that period of time been e-mailed to all members of the House and Senate Transportation and Commerce Committees, to reporters at The Arizona Republic and to various officials at the Arizona Department of Weights and Measures.

The almost total lack of response to my concern that Arizona motorists, for too long, have been denied "Fairness at the Pump" suggests that I have been fretting over a non-problem. Years of disinterest in ATC on the part of the Arizona Department of Weights and Measures is understandable given the unwillingness of the Arizona State Legislature to deal with their scandalous lack of interest in advocacy for Arizona motorists purchasing uncompensated motor fuels.

Thomas Anderson


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