SANTA MONICA, Calif. -- Tesoro Corp. is putting warning decals on its gas station pumps, including dozens of Shell stations, informing consumers about possible volume variances due to changing temperaturethe issue of so-called hot fuelaccording to OilWatchdog.org and the Foundation for Taxpayer & Consumer Rights (FTCR), citing a recent Oil Express report.
San Antonio, Texas-based Tesoro has confirmed the use of the stickers. Tesoro made a business decision to apply decals on our pumps in California, company spokesperson Natalie Silva told CSP Daily [image-nocss] News.However, we want to make it clear that we are squarely aligned with the industry on there being nomerit to the hot fuels claims.
OilWatchdog and FTCR claim in a press statement that the stickers warn consumers that they may not get all the energy they paid for in a gallon of gasoline. They added, Instead of a warning on the pumps, Tesoro should sell gasoline that is compensated for high temperatures that cause the fuel to have less energy per gallon.
Judy Dugan, research director of OilWatchdog.org and FTCR, said, The warning labels are acknowledgement of this long-time oil industry ripoff of motorists just as they begin their holiday trips. More consumers will understand what's causing their summer dropoff in gas mileage and be furious. Tesoro would be better off if it went ahead and sold its gasoline fairly.
FTCR said lawmakers should move quickly to require that gasoline sales compensate for higher temperatures at the pump.
According to the press statement, Oil Express said the three-inch by three-inch decals read: This pump dispenses motor fuel by volume measured in standard gallons (231 cubic inches), as certified by the California Division of Measurement Standards, without adjustment for possible variations due to temperature or other factors which may affect the energy content of each standard gallon dispensed.
FTCR said it believes that the labels, despite their vagueness, will spur motorists' awareness and demands for fair pricing. Consumers will soon decode the warning label's gobbledygook and demand to know why this is allowed when they are already paying more than $3 a gallon, said Dugan. Tesoro is obviously hoping to escape charges of deception, but the industry as a whole can't escape the injustice of its pricing practices.
Attempts to order temperature compensation of fuel in the federal energy bill were defeated in the Senate, but a separate bill may be offered later by Sen. Claire McCaskill (D-Mo.). In the California Legislature, a purported hot fuel measure, AB868, bows to the industry by calling for two years of study and discussion before any action can be taken, said FTCR.
In the Oil Express article, an attorney for distributors and retailers argues that it is illegal to sell temperature-adjusted gasoline. That is certainly not true in California, said FTCR, but the legislature should make it required as well as legal.
The loss is perhaps 50 cents per hot tankful for individual motorists, but the collective loss is estimated, according to federal data, at about $450 million a year in California, said Dugan. Sales must be honest to be fair. Yet the industry from the refinery level on down cheats both motorists and taxpayers by pretending that fuel is 60 degrees in order to fatten their own profits.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.