Hot fuel has been a hot topic lately, as rising diesel prices are forcing drivers to milk all they can out of their tank. Plaintiffs in 26 states filed lawsuits against companies selling gas above the industry standard of 60 degrees.
The lawsuits started back in 2006 after The Kansas City Star had reported that hot fuel was costing customers billions of dollars every year. As fuel gets warmer, it expands, filling up more space in the tank. So if a driver fills his tank with hot fuel, even though the volume of the tank is the same, he’s actually getting less gas – but paying the same amount. Most plaintiffs sued that gas retailers should be required to install Automatic Temperature Compensation systems, or ATC, on their pumps to make sure the consumers get the amount of fuel that they paid for.
Two Kansas men, Zach Wilson and Matt Cook were among those to file a lawsuit in 2006. Theirs was against QuikTrip, 7-Eleven and Kum & Go alleging that they had engaged in “willful deception” by selling hot fuel to customers. Well, 6 years later, a jury of 10 citizens has decided that their case was insufficient.
“This is one small part of what’s been a six-year battle,” said Robert Horn, lead attorney for the Kansas men. “It certainly doesn’t end it, and there are certainly a lot of good things we can take this out of this.”
The Kansas men struck out, but back in April in California, where higher temperatures mean that hot fuel is routinely costing customers $.10 a gallon, a group of defendants including Valero Energy Corp, Casey’s General Stores Inc, and Wal-Mart agreed to pay an undisclosed amount in settlement.
Fuel retailers claim that it would actually cost the consumer more if the retailers were required to install ATC on their pumps because they can pass the savings of not upgrading right on to drivers. Interestingly though, in Canada, where colder weather often means that retailers charge too little for their fuel, you won’t be able to find a pump without ATC.
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Sources: landlinemag kansascitystar consumerwatchdog
Image: by Gentry Mullen – The Kansas City Star
Truman Kimery says
I love the punchline on this one. I first saw ATCs when traveling through Canada and was interested at the concept and wondered why I hadn’t noticed it before. Just follow the dollar, ehh?
Robert says
This hot fuel issue is such BS. It’s on of the reasons I didn’t renew my OOIDA membership, back a few years ago when they were fighting it. Fuel expands and contracts, so in the winter you get more and in the summer you get less. Big friggin deal.
Ethan Clarkson says
It’s all about the money. Companies will not install something unless it saves on their bottom line. I did find it very ironic that areas with colder temperatures have the regulator but the ones in hot areas do not. In response to Roberts post, even if an area has winter doesn’t mean that it balances the scale. Some areas maintain a much warmer temp. even in the winter.
George Dorman says
Sounds like more Big Brotherism to me.I haul fuel and in the summer in Texas the difference in the net and gross on 8500 gals is about 200 gals. Send me your address along with a self addressed envelope with a 44cent stamp and I send you back your quarter. I don’t understand why Americans have become such cry babies.
Lee Waller says
George, with the information you gave me I can calculate the the difference is costing the customer almost 10 cents per gallon at the current price of $4.00/gallon for diesel. If you you drive 150,000 mile per year and are paying for your fuel this could add up to over $2,000 per year savings per truck. I’m no cry baby, but thats a nice no cost profit center for the suppliers and retailers. What could you do with and an extra two grand a year?
JonP says
The story, despite it’s first couple of panicked paragraphs and some strange responses, finally lets us know the payoff in the last paragraph and someone that knows how to digest what they read will figure it out quite easily. When it’s cold you get more fuel for your money so over the space of a year it all evens out and if you live in a colder environment you might actually come out ahead. Geez…….People should be outraged at the Government tax on fuel not this stuff.
Jeff says
Sounds like George better go read 1984 to learn what exactly big brotherism is. What it is NOT is requiring a full measure from a retailer. As the retailers won’t do it themselves, the government should step in to require them to install temp compensators.
If this is big brotherism, then I guess requiring them to have the metering instruments inside the pump calibrated and state inspected every year or 2 is just downright socialist Nazi fascism at it’s worst.