'Hot fuel' rip-off: Drivers are paying for more than gas at the pump

Jan. 1, 2020
Although technology to adjust fuel purchases for varying temperatures exists, it isn't used for retail fuel purchases in the United States.

Although technology to adjust fuel purchases for varying temperatures exists, it isn't used for retail fuel purchases in the United States.

If fuel prices already are high enough, how would consumers feel about paying those prices for hot air? Fourteen members of Congress have told the National Conference on Weights and Measures (NCWM) that it's time to deal with the unacceptable practice of selling fuel that is not adjusted for ambient temperature.

At its recent annual meeting, a vote was scheduled on a new standard that would require retrofitting pumps to adjust volume for temperature. States then would be free to adopt the standard.

Because of deliberate abstentions, the NCWM vote fell short of the minimum majority needed, and no action was taken.

The oil industry opposes the standard, saying it would cost too much to fix the problem. The American Petroleum Institute (API) argues that the cost to retrofit pumps with available technology is too much of a burden for its members, and that consumers wouldn't get any net benefit in the end.

Inflating oil industry 'ghost' profits

Consumer advocacy groups like the Foundation for Taxpayer and Consumer Rights (FTCR) say that "hot fuel" is nothing less than a motorist rip-off.

"The issue is not just whether motorists can afford hot fuel, but whether gasoline is sold honestly," says Judy Dugan, FTCR research director. "It's up to our elected officials to fix it."

Fuel expands and contracts depending on temperature. Gasoline volume changes approximately 0.058 percent for every degree Fahrenheit change in temperature, while diesel volume varies at a rate of 0.048 percent. In addition, at the longtime industry standard of 60 degrees Fahrenheit, the 231-cubic-inch U.S. gallon puts out a certain amount of energy.

But fuel often is sold at much higher temperatures, causing it to expand and the amount of energy per dollar spent to decline for each gallon purchased.

While refiners provide extra gallons to distributors, who in turn provide extra gallons to fuel stations, to make up for heat expansion, no adjustment is made for the motorists purchasing fuel. With prices rising nationally, the cost of "hot fuel" paid by consumers is growing.

"There is no reason to allow refiners, distributors and retailers to use one measure of a gallon for themselves, and a lesser measure for consumers," says Dugan.

House Domestic Policy Subcommittee (DPS) Chairman Dennis Kucinich, D-OH, says he expects the industry to fix the "ghost gas" problem — or soon face Congress solving it for them. The DPC has held several hearings on the hot fuel issue and says that the cost to consumers for this summer alone will be $1.5 billion.

In Canada, 95 percent of gasoline is sold temperature-adjusted to consumers. In fact, consumers benefit from cooler gasoline, getting more energy per dollar spent.

A U.S.-based company, Gilbarco Veeder-Root (GVR), already manufactures gasoline nozzles that adjust for temperature. The nozzles, which the company has sold in Canada, automatically add extra fuel to each gallon when its temperature is above the current industry standard of 60 degrees Fahrenheit and less when the temperature is below the standard. This keeps the energy purchased by consumers at a fair-market equilibrium for all.

The FTCR says it is now up to Congress and the states to require temperature-adjusted fuel at the pump by passing legislation making fuel sales honest all the way to the gas pump and consumer.

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