I sure hope these people in Ca. are not like my x, and they believe all the gas is stored inside the pump
Doogle
Posted on 12/15/2006 1:30:09 PM PST by Diana in Wisconsin
Seventeen oil companies and gasoline service stations have been named in a class-action suit accusing them of overcharging customers at the pump by failing to compensate for changes in gasoline volumes when temperatures rise.
The consumer fraud suit contends that oil companies fail to take into account the fact that gasoline expands when the temperature exceeds 60 degrees. Therefore, the suit says, consumers get less energy for each gallon they buy.
The suit was filed Wednesday by a small number of truck drivers and motorists in California.
According to Public Citizen, a consumer association, the oil industry has resisted installing equipment that can adjust gasoline volumes delivered at the pump when temperatures change. While the difference amounts to pennies per gallon, Public Citizen estimates that oil companies end up overcharging consumers by more than $2 billion each year.
The American Petroleum Institute, the oil industry’s largest trade group, has said that changing the existing metering systems would be too costly while benefits to consumers would be small.
The companies named in the suit include Chevron, 7-Eleven, Valero and Wal-Mart Stores.
(Excerpt) Read more at nytimes.com ...
They're selling a gallon of gasoline. The temperature at the time of the sale is known by the buyer who agrees to the price.
If you want cheaper gas, move where it's cold.
Buy your fuel at night..........
Gasoline is sold by volume, not by energy level (I don't know the term. Therm?), right? So, why should the oil companies have to increase the volume because of ambient temperature? Am I not understanding the physics/economics involved?
So what about when it's less than 60 degrees. Seems like it would average out over the course of the year, except of course, for those areas where it never goes below 60.
I sure hope these people in Ca. are not like my x, and they believe all the gas is stored inside the pump
Doogle
Which weighs more, a pound of feather or a pound of rocks? They weigh the same, of course.
When you purchase a GALLON of gas a the pump, you get a gallon of gas, either cold gas, room-temperature gas, or hot gas, is it still a GALLON, just as they advertise.
Thats why in aviation we calculate in "pounds" of fuel not gallons.
At least now I understand why the evil oil companies conspired with Bush to cause global warming...
;-)
Underground tanks are at a constant ~65 degrees, just about everywhere, I think...
Thermal expansion of fuel is nothing compared to the water condensation when underground tanks get low and the customers buying the last 10% of the tank get more than their share of water -- course the price of bottled water is about $5/gallon, albeit water is a low energy compound.
"Seems like it would average out over the course of the year, except of course, for those areas where it never goes below 60."
I'd agree to that. I always buy gas on the same day of the week (Thursday) at the same station each week. I "dollar cost average" that way and it all evens out over the course of the year. Some days the cost is higher, some days it's lower but by buying at the same place and the same time each week, I have a "constant" in the mix.
I do the same with investing. If you buy the same dollar-amount of shares each month, they, too, average out over the long run.
This is California, so it's usually 73 degrees and sunny, so the gasoline should always be the same, shouldn't it? No big temp swings there.
Except most gas stations have underground tanks. The temp of the ground a few feet down rarely fluctuates that much. It might go from 48 to 54 deg Fahr. where I live in Oregon.
I think someone might countersue, claiming the users were taking more gas in cold weather, but not paying for the temperature-adjusted volume!
The end result will probably be a settlement where the Lawyers get millions in fees, and the consumer gets the compensation of a warning label on all pumps saying "CAUTION: Volume may be different in hot and cold weather".....
Like many in these United States.
Wonder if this bunch of dimbulbs checked their tire inflation lately?
What about every other liquid we but by volume? Milk, beer, water? The same principle applies.
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