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Motorists Sue Over 'Hot' Fuel 572

i_like_spam writes "Motorists in 13 states have filed lawsuits against big oil companies and gas retailers alleging unfair pricing practices related to fuel-pumping temperatures. From an industry standard developed in the 1920's, the price for a gallon of gasoline is based on the density of the fuel at a temperature of 60 degress F. A gallon of gas at higher temperatures is less dense, and therefore contains less energy. The lawsuits claim additional costs of 3 to 9 cents per gallon without temperature adjustments. The fuel industry claims that the costs of installing temerature-adjustment sensors on every pump would be prohibitively high. These sensors are already installed in Canada, however, where the colder temperatures favor consumers."
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Motorists Sue Over 'Hot' Fuel

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  • by i_like_spam ( 874080 ) on Thursday July 05, 2007 @11:39PM (#19763517) Journal
    Recent congressional testimony on this topic: "Hot Fuels - The Impact on Commercial Transactions of the Thermal Expansion of Gasoline" [nist.gov]

    A couple of interesting tidbits from the testimony:

    In some states, compensating for the temperature of refined petroleum products being sold has taken place at the wholesale level -- but not at the retail gas pump (diesel included) or for deliveries of home heating fuel. Some states prohibit temperature compensation at retail and some states prohibit temperature compensation anywhere in the petroleum distribution chain. Most states require temperature compensation for certain products, such as for liquefied petroleum gas (LPG) sales, or propane for home heating, but not necessarily for other products.

    A review of the application of temperature compensation to petroleum volume data showing average fuel storage tank temperatures in the U.S. and possible effect on petroleum measurement. The data on storage tank temperatures, collected by a manufacturer of tank monitoring equipment, over a two year period indicated that the average temperature of product in below ground tanks across the U.S. was 64.7 degrees Fahrenheit.
    • by mdsolar ( 1045926 ) on Friday July 06, 2007 @12:00AM (#19763681) Homepage Journal
      It is not the average but the variation that is important. For example, temperatures are higher in the summer when prices are also higher. Refiners could arrange things to keep prices more even but if this effect is large enough, this could be an intentional thumb on the scale. I think ethanol, which is added in the summer is a larger effect. It costs less that gas and has less energy density so you have to fill up more often when the prices are higher.
      --
      Get more energy in the summer: http://mdsolar.blogspot.com/2007/01/slashdot-users -selling-solar.html [blogspot.com]
      • Re: (Score:3, Interesting)

        I think ethanol, which is added in the summer is a larger effect

        That depends on which state you're in. In the two states that I've lived in where I've owned a vehicle (Michigan and Florida), the content of gasoline is regulated by the state department of agriculture. If it has ethanol in it, the pump has to say it has ethanol in it. This is partly because some types of gasoline engines absolutely cannot have gasoline with any ethanol it because it will cause engine damage. The gas stations I've gotten g

        • Re: (Score:3, Interesting)

          by mdsolar ( 1045926 )
          The summer ethanol is about reducing smog and is only in place in some areas. About 46% of the countries gas is mixed: http://www.drivingethanol.org/promotions/state_fl o rida.aspx [drivingethanol.org]. The addition of ethanol should, in principle, help to stabalize prices but right now it is used as an excuse to manufacture summer shortages.
          --
          Energy supply tight? Go solar: http://mdsolar.blogspot.com/2007/01/slashdot-users -selling-solar.html [blogspot.com]
      • by AndersOSU ( 873247 ) on Friday July 06, 2007 @10:11AM (#19767705)
        In some intro engineering class, the professor asked a question to get us to think about the implications of selecting a unit system. The question was: "Crude and Gasoline are sold on a volume bases (gallon/liter/barrel). If gasoline is refined in Louisiana, and shipped to Michigan does who pays for the missing gasoline (and what are they buying)? Is the sale completed on an "as delivered basis", or an "as shipped" basis?

        Of course the answer is that the consumer pays regardless, but it raises some interesting accounting issues...
    • by goombah99 ( 560566 ) on Friday July 06, 2007 @12:12AM (#19763773)
      I find myself extremely skeptical. fuel tanks are usualy fairly far underground. buried tanks are going to be fairly near isothermal and the ambient temperature is not going to change the temp very much on it's short trip to the tank.

      If anyone is getting ripped by this, it's the independent fuel stations. There a fuel truck that has been driving for days or dipped out of above-ground storage might indeed be warmer. So the station is buying hot fuel. But the consumer is probably buying fuel much closer to the underground temperature. It would not be hard to fix this since measuring the temperature of the fuel truck would be easy and infrequent.

      Finally, were talking a couple of percent difference in energy per gallon here. Don't people suppose that their cars efficiency might also vary by a several percent with ambient temperature?

      Finally, the station sells gas by the gallon not by the BTU. you are still getting a gallon. If anything you are getting more than a gallon since it's coming out of a cold tank and then expanding in your hot car tank. So actually you owe them more not less.

      • by Anonymous Coward on Friday July 06, 2007 @12:29AM (#19763867)

        Finally, were talking a couple of percent difference in energy per gallon here. Don't people suppose that their cars efficiency might also vary by a several percent with ambient temperature?

        People in the United States buy around 350,000,000 gallons of gas every day. Even if the temperature difference accounts for only one tenth of a percent, that's about 350,000 gallons a day. Or $1.1 million a day at $3.15 a gallon. Pocket change to an oil company, but most people would appreciate the slightly lower gas prices.

      • by Graff ( 532189 ) on Friday July 06, 2007 @01:19AM (#19764141)
        You are probably spot-on here. I calculate that if the temperature of the fuel is 100 degrees Fahrenheit then we are talking about a 2.11% increase in volume. This is calculated by the following formula:

        Vf = Vi x (1 + 950 x 10^-6 x (Tf - Ti))

        Vf is final volume, Vi is initial volume, Tf is final temperature in Celsius, Ti is initial temperature in Celsius

        However, as you said, the fuel is stored underground and in the time it takes for it to get pumped up and metered out it probably changes very little in temperature. The worst case is a 2.11% increase in volume but the reality is probably a minute fraction of that.

        The best thing would be to have meters that measured by mass or by density and rate of flow instead of by volume. I'm not sure what sort of metering they are using for their measurement but it's probably a simple flow rate meter which assumes a certain density to calculate volume. That's one of the more simple and least costly designs to use.
        • by Photonic Shadow ( 1119225 ) on Friday July 06, 2007 @01:35AM (#19764241)
          I would point out that in aviation, especially military, navel, and commercial aviation, you never hear talk of gallons of fuel, but rather pounds, or kilos of fuel. This is precisely because the proper metric for the determination of the energy content of a fuel payload is the mass of the fuel rather than the volume of the fuel.

          determination
        • Re: (Score:3, Informative)

          by arth1 ( 260657 )
          You're talking 2.11% for a 40F temperature increase, and that would probably be true for a "pure" gasoline. However, the gas is far from "pure", and a more accurate average value would be around 2.4% -- that's what the gas companies have to compensate for such a temperature difference on wholesale. In reality, it might be higher these days, due to to almost all gas now being 10% alcohol, and many states adding MTBE or requiring oxygenated fuel.

          Also, regarding the majority of the heat in gas being due to t
          • by TapeCutter ( 624760 ) on Friday July 06, 2007 @04:27AM (#19765119) Journal
            "and the gas station will get an ~2.4% rebate for gas delivered at 100F, but still sell it at full price to the customers! That's what's wrong."

            Not if the retailer sells it at 60F, that's the whole point of the wholesalers paying the rebate. The argument would seem to be about the tempateure of the underground storage.

            As another post pointed out: Neglecting the vodka content, if the retailer sells it at 67.4F he will skim ~$0.20 profit for every $50.00 of gas sold. - I'm pretty sure you would loose more than that in vapour expelled from the tank when filling up on a hot day.

            Off course the reasonable answer is that everyone in the chain either does or doesn't get the adjustment, OTOH: "reasonable" and "oil company" are rarely mentioned in the same breath.
            • Re: (Score:3, Informative)

              by afidel ( 530433 )
              Since fuel tanks are far enough underground to reach equilibrium with earth fairly quickly they and the fuel they contain should average darn close to 55 degrees. There will be some heating of the contents of the supply tube from the tank to the pump, which is probably why the standard was set at 60 =) In fact as someone else pointed out the fuel is more likely to be warm in the tanker delivering to the station, but even then unless it's in the desert SW I doubt it's significant as the fuel load for a deliv
          • Re: (Score:3, Insightful)

            by MightyYar ( 622222 )
            But the price that the gas station charges is only slightly related to the cost of the fuel. The price of gas down the street is more likely to be a factor. If you make them start compensating for temperature, they will just hike the price. This whole thing is silly unless you find one station with warmer gas than another, giving them an unfair advantage.

            Retail gas is not a money maker - the little convenience store is what makes money.
        • by Rob the Bold ( 788862 ) on Friday July 06, 2007 @07:41AM (#19765977)

          However, as you said, the fuel is stored underground and in the time it takes for it to get pumped up and metered out it probably changes very little in temperature. The worst case is a 2.11% increase in volume but the reality is probably a minute fraction of that.

          I've worked in tank gauge and dispenser engineering at two major petroleum equipment manufacturers. Although the gasoline is stored underground at the station, it's processed and distributed and shipped above ground at ambient temperatures. And the retailers prefer not to store too much for too long, since it's money tied up in inventory. So as you watch the fuel temperatures on the UST gauges around the country, you'll see the temperature of the product tracking pretty close to the daytime air temperatures.

          The retailers, by the way, buy gasoline 'net' (temperature compensated). They require the delivery trucks to measure the temperature of the fuel they drop in the tanks, and they compare the temperature and volume change in the UST before and after the delivery when they reconcile the inventory.

          I have to agree that it would be fairer to sell gasoline 'net', rather than 'gross', even though I doubt that it would affect the price consumers pay very much just due to the elasticity (or lack thereof) of demand for gas. One important note about metering retail gas 'net': you can fill an 18 gallon tank with more than 18 gallons worth of 'net' gas in the winter in cold areas. This can upset consumers, who assume they are being cheated by a dishonest dispenser. But it works OK in Canada, so we could probably adapt in the US, too.

          The retailers' 'too expensive to install the equipment' argument is bogus. Gasoline pumping, metering and dispensing equipment is sold worldwide. Some places sell gas 'gross', some sell it 'net'. Some sell US Gallons, some Imperial Gallons, some litres. The same equipment is used in all these places, selecting the dispensing method is a configuration option on a modern dispenser.

      • by node 3 ( 115640 ) on Friday July 06, 2007 @02:10AM (#19764439)

        I find myself extremely skeptical. fuel tanks are usualy fairly far underground. buried tanks are going to be fairly near isothermal and the ambient temperature is not going to change the temp very much on it's short trip to the tank.
        The question isn't whether the temperature stays the same, but whether the temperature the gallon is measured at matches a reliable, established, standard, which TFA claims it doesn't.

        If anyone is getting ripped by this, it's the independent fuel stations.
        In other words: if someone else is getting ripped off worse, then the person getting ripped off less can't complain?

        Finally, were talking a couple of percent difference in energy per gallon here. Don't people suppose that their cars efficiency might also vary by a several percent with ambient temperature?
        So, then it's perfectly fine to be overcharged so long as something entirely separate affects efficiency after the sale?

        Finally, the station sells gas by the gallon not by the BTU.
        No one said it was. What is claimed is that it's sold by the gallon, with the gallon being defined as at a certain temperature. Or do you buy your produce "by the pound", but allow the grocer to define the gravity it's measured against?

        Tell you what, if you *truly* believe your arguments are sound, I'll sell you pound of gold (based on Jupiter's gravity), measured at prices defined against Earth gravity. You shan't complain because I'll sell the same amount of gold to someone else at Moon-measured pounds. And just to be fair, I'll measure the gold I sell you at a constant, "isojupiterpound" level. And even if you *do* think you still have grounds to complain, I'll remind you that there are other factors that will affect the value of the gold you're buying, not just the gravity I measure the pound against. Besides, you're buying by the pound, not the gram, and even if I get to choose the gravity, these measurements are all pounds, aren't they?
      • Re: (Score:3, Informative)

        by tomhudson ( 43916 )

        Wake up - the reason the oil companies installed temp sensors in Canada was because otherwise, Canadians would get over 10% MORE energy (because the gas is much denser at lower temps) than in the summer.

        Why not do like Canadians do - while its sold by the "litre", its really sold by weight. That's what temp. compensation is all about. You get the same weight of fuel at -40C as you do at +40C.

        So why do some states outlaw this? Because they get more tax revenues, since people are buying by volumn, not by

  • by ChronosWS ( 706209 ) on Thursday July 05, 2007 @11:40PM (#19763525)
    Because not only would they have to pay for the cost of the installation, but then they'd lose money due to the metering changes based on temperature. Then again, it's not like THEY pay for it. We do.
  • Well... (Score:5, Funny)

    by pushing-robot ( 1037830 ) on Thursday July 05, 2007 @11:41PM (#19763535)
    Business math 101: Their accountants looked at the money they'd lose after installing the sensors and prohibited the engineers from doing it. Ergo, the sensors are prohibitively expensive.
  • Prohibitively high (Score:3, Insightful)

    by Skidge ( 316075 ) on Thursday July 05, 2007 @11:41PM (#19763537)

    The fuel industry claims that the costs of installing temerature-adjustment sensors on every pump would be prohibitively high.


    It might be the case where it really is prohibitively high, if it's the gas station owners that would be paying for it. They sell the gas at very thin margins, making more money on bags of chips and bottles of water.
  • Competition (Score:3, Funny)

    by AvitarX ( 172628 ) <me@@@brandywinehundred...org> on Thursday July 05, 2007 @11:42PM (#19763541) Journal
    Shouldn't competition keep the prices low?

    I bet the 3 to 9 cents is coming off the price and not out of the pocket. The only place where it really matters is when the temperature swing is large and people fueling during rush hour are left paying more than those at night, of course if the consumers were educated about that it would free up rush hour slots at the station and consumers would still win.
    • Night and day would only matter if gas were stored above ground. I'm pretty sure that the temperature of underground tanks won't change that rapidly.
    • Re:Competition (Score:4, Insightful)

      by Cadallin ( 863437 ) on Friday July 06, 2007 @12:33AM (#19763895)
      No. See http://en.wikipedia.org/wiki/Collusion [wikipedia.org]. There is no competition amongst oil producers, because OPEC controls a good 80+% of the supply. The competition only exists between different gas stations (although most of those are owned by OPEC puppets as well) where the small family owned gas stations (there are a couple out there) get squeezed for every last penny.
  • by Hal_Porter ( 817932 ) on Thursday July 05, 2007 @11:42PM (#19763547)
    Look on the bright side - the fact that the US companies do this sort thing to a greater extent than in other countries is evidence that they operate in more competitive and less regulated environment where a few cents is noticed. And while you may pay a few extra cents for you petrol, you probably pay less for other things because of this.
  • by EmbeddedJanitor ( 597831 ) on Thursday July 05, 2007 @11:42PM (#19763553)
    Gas is mainly stored underground in reasonably stable temperatures. A daily measurement should be good enough.

    Sure there's a small amount of gas (probably less than half a gallon) above ground in the pump that will warm and cool relatively quickly but since it is only half a gallon who really cares?

    • by Joebert ( 946227 )
      I know a guy who lifts the droop out of the hose when he's done pumping to make sure none of his gas remains in the hose.
    • by i_like_spam ( 874080 ) on Friday July 06, 2007 @12:00AM (#19763679) Journal
      Yeah, it's stored in pressurized, insulated tanks underground, which will buffer the gas from temperature fluctuations. For this reason, I think that the lawsuits won't get too far.

      But, the recent Congressional testimony [nist.gov] on this topic and the multiple lawsuits in many states (some of which are class action), makes me wonder if there's something more to the story.
  • That would be why (Score:3, Insightful)

    by VirusEqualsVeryYes ( 981719 ) on Thursday July 05, 2007 @11:43PM (#19763559)

    These [temperature] sensors are already installed in Canada, however, where the colder temperatures favor consumers.
    ...which would be why they are installed.
  • by mdsolar ( 1045926 ) on Thursday July 05, 2007 @11:46PM (#19763573) Homepage Journal
    This site give the coefficient of thermal expaansion for gasoline: http://www.ac.wwu.edu/~vawter/PhysicsNet/Topics/Th ermal/ThermExpan.html [wwu.edu]. For a 20 C increase in temperature I get about a 2% increase in volume or a 6 cent difference for $3/gal gas. So the article seems about right.
    --
    Get solar power with no installation cost, pay for only what the system produces: http://mdsolar.blogspot.com/2007/01/slashdot-users -selling-solar.html [blogspot.com]
    • by belmolis ( 702863 ) <billposer@@@alum...mit...edu> on Friday July 06, 2007 @12:23AM (#19763845) Homepage

      I saw something about this a couple of weeks ago and blogged [billposer.org] about it because the numbers seemed off. The cited chart, which is the same one I used, gives the volumetric coefficient of thermal expansion for gasoline at 20C as 950e-6, which is 9.5e-4 per degree C. Dividing by 1.8 to convert degrees C to degrees F, we get a coefficient of 5.2e-4 per degree F. For an increase of 5F, that's an expansion of 2.6e-3. If gasoline is $3 per gallon, the difference is 7.8e-3 dollars per gallon, that is, about 3/4 of a cent. That's an order of magnitude less than the 3 to 9 cents per gallon that people are talking about. One or the other of us has got a decimal point in the wrong place.

  • tanks (Score:2, Interesting)

    What if they just put the tanks deeper underground? would it affect it at all?
    • I suspect that cost more than the temprature adjustment sensors. It also would not change the temperature of the air at pump level.
  • Easy Fix (Score:3, Insightful)

    by Ansible42 ( 961707 ) on Thursday July 05, 2007 @11:54PM (#19763627)
    Just make the standard at 100F instead of 60F, then temperature sensors will be all the rage, as they apparently are in canada.
    • Re:Easy Fix (Score:5, Funny)

      by Dyolf Knip ( 165446 ) on Friday July 06, 2007 @12:07AM (#19763735) Homepage
      Just make the standard at 100F instead of 60F, then temperature sensors will be all the rage, as they apparently are in canada.

      The oil companies would respond by trying to accelerate global warming and push the average temperature over 100F so they can start saving money again.
    • How hot can a pump get in the summer heat of Arizona? Maybe 200 degrees? Let's make it that then.

      Forget the temperature compensation crap. Let's just require fuel to be served at 200 degrees.

      Now that I think about it, this might help safety and environmental issues. Fuel expanding in a car's gas tank gets vented outside. That's awful. If it starts out hot and low density, venting is unlikely.
  • temp sensor (Score:3, Insightful)

    by SolusSD ( 680489 ) on Thursday July 05, 2007 @11:56PM (#19763647) Homepage
    Seems to me all that would need to be added is a temperature sensor. Then all they would have to do is lower the cost of gas when the gas is significantly hotter than 60 degrees.
    • by Tuki ( 613364 ) on Friday July 06, 2007 @12:01AM (#19763691)
      I have always thought that I was getting ripped off by the person before me that used regular gas, when I pumped premium. Are there several hoses in that pipe, or do I get a hose length of 10 cent cheaper gas in my car everytime that I fill up? If the latter is true... someone start up a class action lawsuit... I have a job that keeps me too busy.
  • by thesandbender ( 911391 ) on Friday July 06, 2007 @12:05AM (#19763715)
    I grew up around big oil. Wells, refineries, etc. and I've heard this premise more than once. On the surface, it makes sense but it doesn't hold up in practice. There are really two problems with this theory:

    1. (the most important) gasoline tanks are buried 10+ feet under ground. They don't experience the same temperature fluctuations that the surface does. The temperature of the tank can easily be 15-20 degree below ambient air temperature or more. Also, it doesn't fluctuate as much.

    2. In the vast majority of the country, the *average* weather nullifies this. Even in Texas, where I grew up, a lot of the state averaged 40-50 for a few months out of the year. In New York, where I am now... the *average* daily temperature breaks 60 for a few months out of the year. Average is important. If it's only above 60, even 70, for a few hours out of the day that will have *no* effect on the tank which is sitting comfortably at 50 or so. So yes... a few months out of the year you're paying more for gas. But a few months out of the year your also paying *less* for gas and most of the time you're breaking even.

    I can see this being a valid argument in AZ, Southern NV, AZ... places that are at 100+ right now. But everywhere else in the country it's just someone else trying to get something for nothing.

    You also have to bear in mind that this is going to hurt the station owners, not the petroleum companies. In some cases the petroleum companies own your local gas station (usually only in high profit locations) but most of them are licensed by franchises (still private individuals) or independent owner/operators and they will end up eating the cost of the equipment. Not "big oil".

    I'm not a shill and I actually don't care for big oil at all... but this is just a stupid lawsuit. Sue them for not pursuing alternative energy. Sue them for not upgrading to more efficient and clean refineries. Sue them for not managing their waste products.

    This is just a petty waste of time and doomed to failure.
    • I think it will also depend on how often the station is supplied. The tanker coming in on a 100 F day is going to deliver 100 F gas. The tanks will cool this, but it will take a while to cool a tanker load (if the station can take that large of a delivery). If the gas is sold before it can cool, you'll get an effect.
      --
      Solar power at an affordable rate: http://mdsolar.blogspot.com/2007/01/slashdot-user s -selling-solar.html [blogspot.com]
    • by NFNNMIDATA ( 449069 ) on Friday July 06, 2007 @12:43AM (#19763947) Journal
      I think all you need to know about this is they went to the trouble to install them in Canada where the temp favors the consumer. That would seem to indicate the gas company believes in the phenomenon in question.
    • Re: (Score:3, Funny)

      by flink ( 18449 )
      It's not the heat, it's the humidity! :-P
    • by jimmux ( 1096839 ) on Friday July 06, 2007 @12:57AM (#19764021)
      Not to be picky or anything, but the tanks often aren't 10+ feet under ground. Not at the retailer, anyway.

      I know this because it was once part of my job to manually measure the levels of these tanks. The dip-stick was at most 6 feet long at the sites I worked.

      In my experience the tank can be as little as 2 feet below the often hot concrete surface.
    • Re: (Score:3, Informative)

      The LA times [latimes.com] had an article on this two months ago. The most interesting part of the article may be where the refer to a California study that found the average underground monthly average tank temp ranged from 64 to 83 degrees F. At 83 degrees F, that's about a 1.2% volumetric change from 60 degrees.

      Is 1% worth a law suit? Depends on your perspective I guess . . .
    • Arguments about this hurting station owners is based on the flawed assumption that gasoline has a fixed markup, but that's generally not true: Most states allow market economics (including, of course, wind direction, phase of moon, rumors, lies, and perhaps now ambient temperature) to dictate the price of gasoline at the pump.

      So, in a hypothetical dream-world where all gas stations are required to adjust the meaning of the US Gallon based on temperature, all gas stations in a given climatic area will be ab
  • What about the fact that the pump components are also expanding? It seems like that would be more significant than the gas its self expanding. The most accurate solution, as mentioned on car talk, would be to sell gasoline by weight as the weight does not change with temperature.
  • by hxnwix ( 652290 ) on Friday July 06, 2007 @12:07AM (#19763741) Journal
    Yeah, it's too expensive because it would cost the oil companies a lot of money.

    What they did there is pretty clever, eh?
  • Although a class action suit will result in lesser benefits for consumers, i would still prefer it since it involves a higher payout for oil companies.
    A simple calculation from 2004-2007 (statue of limitations) of total gas pumped in all of US from all company owned pumps alone would result in excess fleecing of consumers by atleast 35 billion dollars.
    A class action suit would probably result in 25% of the amount being paid out to lawyers and consumers being given coupons.
    But i would still prefer it, since
  • I am appalled! (Score:2, Insightful)

    by fermion ( 181285 )
    The oil companies must compensate us from losses due the energy fluctuations in their products due to weather. They must sell us gasoline by the energy it contains, not gallons. Not only that, they must take into account the differences of effeciency. So if we buy gas when it is 60F, with a maximum carnot efficiency of 75%, then we should pay at most 75% of the stated price. When the temperature is 100F, we should only pay 50 cents on the dollar.

    But lets not waste time on all these diversionary tactic

  • by suv4x4 ( 956391 ) on Friday July 06, 2007 @12:27AM (#19763861)
    The fuel industry claims that the costs of installing temperature-adjustment sensors on every pump would be prohibitively high. These sensors are already installed in Canada, however, where the colder temperatures favor consumers.

    Nutrasweet is harmless! (i.e. cheaper than sugar!)

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    We can offer better price and services as a single huge telecom monopoly, don't split us up! (we'll kinda merge later anyway)

    Piracy causes tremendous losses to our industry! (we know this, since whatever our profits, we think they should've been 4 times that!)

  • by AtariDatacenter ( 31657 ) on Friday July 06, 2007 @12:39AM (#19763933)
    Most states and even some cities have a 'department of weights and measures' that have a pretty good legal authority to conduct all sorts of testing in regards to the measurement of things sold. I looked up the local ordinances on mine, and they had some fairly nasty teeth to them.

    These are exactly the people who you want to get involved to investigate this kind of thing.
  • by SashaMan ( 263632 ) on Friday July 06, 2007 @01:15AM (#19764121)
    Great, so as a motorist, if I win as a member of this class action lawsuit, I'll maybe get a coupon for $5 of gas, while the lawyers will get tens of millions. I can't wait.
  • by stewbacca ( 1033764 ) on Friday July 06, 2007 @01:41AM (#19764261)
    I'm I the only American on the planet rooting for higher gas prices in the US? Higher gas equals less SUVs and trucks which equals less congestion. I live in England now, and $7.50 gallon gas is the norm. Get over yourselves already America.
    • by Lumpy ( 12016 ) on Friday July 06, 2007 @07:19AM (#19765817) Homepage
      I used to root for the higher prices to put the pinch on those soccer moms and other idiots tht think they NEED a 7 foot wide 14 foot long vehicle to drive alone in.

      But a reality kicked in. The poor only can afford the throw away from the rich. Right now the poor are sucking up the SUV's because they are all over the place at the $1500-$3900 price tag, which is all the car they can afford. The efficient cars like the older GEO metro the VW TDI and others are not selling for such low prices (I just sold a 3cyl Geo metro on Ebay for $6500.00 Bluebook is $3500) as the middle class are sucking them up off the used market.

      So if Gas goes up it only punishes the poor. The rich and middle class like to bitch about it but it really does not affect them one tiny bit. The poor and working poor are those it hits incredibly hard as they cant afford a car that get's > 20mpg cant afford to have their car's in perfect running condition, and cant afford things like Low rolling resistance tires to beef up their cars economy (I have a 2001 Aztek, after a few modifications I am getting 28mpg.).

      Soaring gas prices are simply extending the gully between rich and poor. Rich dont care, middle class bitch but really dont care as they are not selling their H2's or Surburbans to get smaller cars...

      It's the poor that care. if the price were to increase enough it will make the difference between eating meat and dairy this week so daddy and mommy can get to work.
      • Re: (Score:3, Insightful)

        So cut payroll taxes so people can get food, but we need people to snap up high-mpg cars.

  • by aepervius ( 535155 ) on Friday July 06, 2007 @02:46AM (#19764605)
    In the calculation below I often take the most near numbers, since there are many unknown it does not need to be precise.

    One need to calculate the number of gallon sold in hot weather, and multiply by 1.2% of 3$ cents.
    Taking this fuel consumption in gallon US 2002 [infoplease.com] for passenger car motor vehicule there was 75000 million gallon and for all motor 167000 million gallon over 2002 (likely more now). Taking ALL motor, 167000 million gallon, and assuming a constant consumption over the year (not true but bear with me) that is 450 million gallons per day. Since most people buy their fuel during day time (at least here around...) I will asumme 100% was bought during the day to simplify. So for EVERY hot day we have roughly 450 million gallon per day bought. But in reality this is for the whole US but not all state will have a very hot temperature. Looking at the population of california, texas and a few other hot state, I come to a population estimate of roughly 70 million people (texas 29M+california 36M+ a few southern bordering 5M). Naturally this is likely to be a bit of an overestimate but I do not went to write a thesis, so unless somebody has better numbers... OK so the proportion is 70/299=~24%. So the fuel consumption for those people per hot day will be 24% of 457 =roughly 105 million gallon per day
    . If there is a difference of 1.2% in volume, that means consummer paid 0.036$ too much at 3$ per gallon. This means for oil company a benefice per hot day, for ALL oil company taken together : 3,7 million dollars. Now I do not know the reparition per company, but assuming saomebody knows the % that could be done. repartition.

    Still for each individual the loss of 0.036$ might not be that big, but the oil market per HOT day seems to get a few millions dollar, with maybe as much as 30 hot days per years, that would make roughly 100 million dollar. Multiply by 60 years. Sum mount rreaaaallly quick. This is not a BIG sum, but this ain't small chump either.
  • Dipsticks (Score:5, Informative)

    by DynaSoar ( 714234 ) on Friday July 06, 2007 @02:59AM (#19764679) Journal
    ... And I say with with vehement disgust in lieu of stronger words. I like stronger words, but those to whom they'd refer have their heads someplace where they couldn't hear them clearly, so I'll save them.

    When I was crawling in and out of underground fuel tanks in a space suit (not really, but we called it that; the air supply was via a hose, not an air tank) I picked up more than a couple pertinent details. And after reading this article I went and looked up a couple more.

    The underground temperature at the depth most tanks must reside is between 54 and 58 F depending on location (and varying 1 to 2 F over a year), not 64.7. That figured was arrived at by a company that sells the same kind of equipment this article talks about. They have a vested interest in the data. Not stated is when the measurement is taken -- just after a 5,000 gal. tanker dumps its load into a 20,000 gal tank?

    Tanks need to be more than just under the surface. They need to have enough ground covering them so they don't float up out of the ground through bouyancy. Many are tied down by steel straps to a concrete cradle for this reason, but the depth underground is a fail-safe and still adhered to. They also have to be well underground anywhere a vehicle has to drive over them, or a concrete apron will cover them, so the weight above will be spread out and not collapse the tank. Thus, they're almost invariably below the level where variations will be more than a degree or two.

    The average annual temperature temperature where I am, Dallas-Fort Worth, is 64.5 F. The expansion of gasoline from 60 to 64.5 is ~0.3% (0.00069 per degree F; diesel is less, 0.00050 per). The amount of gas above the ground in a piping and pump system is the only part of a fill up that'll be affected by air temperature, and then only if it sits long enough to equalize. The volume involved is from 0.5 to 1.5 gallons depending on distance from riser and style of pump+hose. The rest of what's pumped will come right from underground and will be at or less than 60 F.

    If this passes, the average US driver will lose the benefit they're already getting due to the average temperature being less than 60 F. The average temperature from 1900 to 2000 is less than 60 over almost all the US (according to plots from data at NOAA's Earth Systems Research Lab http://www.cdc.noaa.gov/USclimate/USclimdivs.html [noaa.gov]) . The expansion of the small portion of gas above the riser will be negative for more people than not, more of the time than not. It'll be a contraction.

    They'll also pay even more because they'll foot the bill for these devices and their installation; the big oil producers will just plow these costs into the price, and it'll never be noticed, because they can raise the price 10 times that amount, then drop it 9 of that 10, and people will think the price is so close to what it started at that they won't think about it twice.

    I had more than a passing familiarity with the issue. Besides going into tanks to inspect them, I also did the annual volumetric testing of gas pumps. I had to apply the correction factor. Where I was, the upper peninsula of Michigan, the average air temperature was very much less than 60. It was 32 F when I moved there in 1976. However, we applied the correction, or rather tried to, based on measuring the temperature of the fuel in the testing can. There was a thermometer built into the glass tube on the side of the can's neck where we also measured the gas level in 0.1 in^3 increments (one part on over 10,000 for the 5 gallon testing can). The temperature was never, as far as I can recall, ever outside the 50s F range.

    I'd like to hear from someone up in the Great White as to exactly why they have those temperature sensing devices installed. Whose idea was it, the gas companies' or the peoples'? The article(s; I've looked at several elsewhere) seems to imply the former, but I can't find anything explicit on it.
  • by steveoc ( 2661 ) on Friday July 06, 2007 @03:35AM (#19764891)
    The Australian CSIRO studied this problem about 10 years ago, at a cost of around $3million AU.

    (The paper with the results can be found here :)
    http://www.aip.com.au/issues/temperature.htm [aip.com.au]

    "On the basis of the CSIRO study, Federal and State Consumer Affairs Ministers decided in 1996 that the costs, both capital and ongoing, of temperature correction outweighed any potential benefits.

    The extra costs involved in temperature correction would put additional upward pressure on petrol prices.

    All the oil companies have in place procedures for addressing claims of fuel losses by service station operators."


    However, this was based on adding temp compensation equipment to the price of each fuel bowser, which at the time cost around $2000 US to add to each fuel bowser. (A fuel bowser typically costs around $10000-20000 each), and based on the price of petrol in 1996 terms.

    Given the dramatic increases in the cost of fuel, AND the newer (cheaper) technology available in fuel metering -- we might see this whole situation be reviewed in Australia, especially if this lawsuit grows legs and takes off in the US.

    As it stands, petrol stations and fuel deliveries in Oz are already heavily regulated to take temperature into account whenever fuel is loaded from a road tanker into a petrol station tank .. so the commercial dealings between retailers and oil companies already take this into account.

    Disclaimer: My major customer is an Australian linux-loving company that makes fuel bowsers and all the electro-techno stuff that connects to them. IF a new law was introduced here that suddenly demanded Temp Compensation inside each fuel bowser, then we would all become insanely rich overnight, at the expense of the average joe consumer who would pay WAY MORE at the pump .. but really, there is a lot of good science and logic and economics in the way of that sort of law being introduced here. Anyway - Here is to hoping that they defy logic and introduce such a law in Oz !!

    I think that Alaska and Hawaii have regulations in place that require temp compensation metering devices in fuel bowsers though.
  • Hello!!! (Score:3, Informative)

    by Genda ( 560240 ) <mariet@nOspaM.got.net> on Friday July 06, 2007 @03:57AM (#19764973) Journal

    Hey people... we're talking THE OIL COMPANIES... YES?!!!

    I mean this isn't brain surgery... these are the same folks that just this year charged U.S. Citizens record gasoline prices nation wide, even though global pressure was actually down, price per barrel was down, and surplus stocks of gasoline were heading for a high (i.e. Their not even bothering to make excuses any more... they're just gonna charge us whatever they bloody well feel like... screw supply and demand and if you don't like it their good buddy the President will try to ramrod another bill through DC giving them another 20 or 30 billion more of your tax dollars for an encore!)

    It's like getting pissed off at your rude neighbor because his dog uses your yard as a toilet. You have two choices. You can fume in impotent rage, obsessed by your neighbors lack of consideration and responsibility... or you can call animal control, and quietly laugh to yourself as your neighbor has to put a sizey chunk of change down to cover Spot's neutering, immunization, and getting sprung from animal sing sing. Your choice, your problem or theirs. Notice which one makes a difference.

    Oil companies are a business. Make it really expensive for them to be cheesey, politico buying, scum sucking, dirty rotten, cheating pigs, and they'll stop. No profit. As long as we in this country worship at the altar of the almighty dollar, and sell our government to the highest bidder, expect no different. Again, your choice... always has been, always will be.

    Like is said... not brain surgery.
    • Re: (Score:3, Insightful)

      As long as we in this country worship at the altar of the almighty dollar, and sell our government to the highest bidder, expect no different. Again, your choice... always has been, always will be.

      Unfortunately, the only way to go about making any radical changes at this point is to physically drag out the entire ruling elite and their political dogs and hang them. This tends to lead to decade or more of civil war and strife, and people hate that. It's so uncomfortable. So things have to get really bad b
  • The sage advice has always been to buy gas before 10am. Of course, being forthrightly compensated for warmer less dense fuel would be better. As Michael Moore repeatedly suggests in his new movie - and this is rightly the subtitle of the movie - it's long overdue for Americans to be MORE like the French and make our government and corporations afraid of us rather than the other way around. It's the French (and Canadian)people screaming "Jump!", and the French guv'mint and big biz meekly asking, "How high?"

    Sorry about the movie spoiler. Or not.
  • by Rick Richardson ( 87058 ) on Friday July 06, 2007 @04:50AM (#19765209) Homepage
    ... but it is COLDER than 60 degrees for 8 months a year here in MINNESOTA.

    Please, we like it that way!!!!!
  • by doradox ( 670714 ) on Friday July 06, 2007 @05:07AM (#19765279)
    I can tell you we received the "correction" and it went both ways. We'd break about even spring/fall (very little correction)with summer/winter( making a little more in summer vs. winter) giving us an small overall gain. For the whole year it was on the order of about $.005 US/gallon. Our market would have have adjusted retail prices to compensate had we not received the correction. When one makes 5 cents per gallon 1/2 cent can be the difference between staying in business or not. This is a non issue.

    Steve
  • by PeeAitchPee ( 712652 ) on Friday July 06, 2007 @06:38AM (#19765607)

    . . . I can tell you that the c-stores are much more interested in making sure they don't run out of gas. Fuel and cigarettes have become commoditized to such a point that retailers can't grow their business with the stuff anymore and are actually expanding through things like newer, larger store formats and food service programs. I never heard anyone making a big deal out of temperature fluctuations -- the retailers certainly don't gain / lose significant amounts of money because of it.

    They are, however, very concerned with having a tank run out -- meaning they can't sell any gas, period. Typically, they already have in-tank sensors for fuel levels, even on moldy old pre-IP equipment. I was onsite at an install last December at a rather large store and this happened for about 15 minutes -- the forecourt controller went down and had to be rebooted -- and *everyone* in the store dropped what they were doing and attended to the problem. The retailers' margins are razor-thin with fuel so they have to make money by selling a ton of it -- and they can't do that when they don't have any or when the dispenser-related equipment is down.

  • Simple solution (Score:3, Insightful)

    by DrSkwid ( 118965 ) on Friday July 06, 2007 @07:19AM (#19765807) Journal
    Sell it by the kilo
  • by Maxo-Texas ( 864189 ) on Friday July 06, 2007 @10:08AM (#19767663)
    Okay... so I'm selling you a product for an arbitrary price.
    I have to make $500k to stay in business.
    I want to make $100k more to keep me working in the business (since that gives me $80k take home). Say that works out to .007 cents per gallon.

    Now you change the law- make me install new sensors- etc. etc.

    I'm still going to want $80k take home pay. I still have to make $500k to keep the business going. Who is going to pay for the sensors, installation, and monitoring? Me? The oil company? No.

    Of course-- you are going to pay for installing the sensors, installation, and monitoring. So the price is going to be more accurate- but it is going to be higher.

    It's part of the reason cars that are $10,000 in some countries are $23,000 here. A long series of "well this is only $200 so we should require it" laws has grossly inflated our car prices. It inflates our labor costs too.

    So you can be over charged and pay $1.08 for $1.00 of gas and spend $525 a year on gas or you can be accurately charged for the gass and spend $535 a year on gas.

    Your call. People should let this particular issue go in my opinion.

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