KANSAS CITY, Mo. -- After several years of litigation, a federal district court in Kansas City, Mo., has given preliminary approval to settlements with 28 defendants in a consumer class-action lawsuit concerning what has come to be called "hot fuel"--how gasoline and diesel motor fuel are sold at retail gas stations with regard to temperature.
The plaintiffs in the case before U.S. District Court Judge Kathryn H. Vratil said customers are shortchanged when buying gasoline that is over 60 degrees. Proponents of automatic temperature compensation (ATC) devices claim that consumers are getting less than a gallon of fuel for a full gallon price.
In July 2009, the National Conference on Weights & Measures (NCWM) rejected measures to require or allow ATC for retail fuel dispensers. It cited consensus against ATC as well as economic cost factors, lack of consumer benefit and absence of uniformity in the marketplace as reasons for its decision, according to NATSO, the National Association of Truck Stop Operators.
The settling defendants are B-B Oil; BP Products North America and BP West Coast Products (BP); Casey's General Stores; Chevron U.S.A.; CITGO Petroleum; ConocoPhillips; Coulson Oil; Dansk Investment Group (formerly USA Petroleum); Diamond State Oil; ExxonMobil, Esso Virgin Islands and Mobil Oil Guam (ExxonMobil); E-Z Mart Stores; Flash Market; G&M Oil; J&P Flash; Love's Travel Stops & Country Stores; Magness Oil; M. M. Fowler; Port Cities Oil; Sam's Club; Motiva Enterprises and Equilon Enterprises dba Shell Oil Products US (Shell); Sinclair Oil; Sunoco (R&M); Tesoro Refining & Marketing; Thorntons; United El Segundo; Valero Marketing & Supply; World Oil; and W.R. Hess.
The settlements cover persons and entities who purchased motor fuel after Jan. 1, 2001 (for 24 settlements), or after Jan. 1, 2004 (for four settlements), in the following states and jurisdictions: Alabama, Arizona, Arkansas, California, Delaware, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Washington, DC., Guam and the Virgin Islands.
There is a separate proposed settlement for each company, and each settlement may not cover all of the states and jurisdictions.
The settlements cover persons and entities who purchased motor fuel after Jan. 1, 2001 (for 24 settlements), or after Jan. 1, 2004 (for four settlements).
Six of the companies (BP, Chevron, ConocoPhillips, ExxonMobil, Shell and Sinclair) will collectively pay $22.925 million into funds to reimburse retailers for the costs of installing equipment that corrects for the effects of temperature on motor fuel and to help state officials who oversee the retail sale of motor fuel make sure that any changes in how motor fuel is sold are done lawfully.
Settlements with 18 companies, which total $1.577 million, fund only the second activity.
A portion of the settlement funds may be used to cover costs, including the costs of providing notice to class members and legal fees.
The other four settling companies (Casey's, Dansk, Sam's Club and Valero) have agreed to gradually convert a portion of their existing and new stations, where permitted by state law, to fuel pumps that can adjust for the effects of temperature.
The proposed settlements provide no money directly to consumers who have purchased retail motor fuel. In settling, the companies are not admitting any liability or conceding that the claims have merit, according to the court documents.
The court has scheduled a hearing for June 9, 2015, to determine whether to give final approval to the settlements.
Click here to view the settlement website for more details, including settlement agreements.
And click here for an in-depth look at hot fuel settlements in CSP Daily News.
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.