ROME, Ga. -- A federal lawsuit filed in Rome, Ga., has raised the issue of how the temperature of fuel when pumped can cost consumersespecially those in warmer states.
According to The Rome News, National Institute of Standards & Technology (NIST) data shows temperatures of fuel at gas stations around the country average about five degrees warmer than the federal standard temperature of 60 degrees at which gasoline is priced to sell.
At Georgia gas stations, that temperature is 12 degrees higher at 72 degrees, said the report, [image-nocss] citing NIST.
Plaintiffs in the suit claim retailers are paying taxes on gallons of colder gasoline, which take up less space, and then keeping extra taxes when heat expands the fuel into more, less-efficient gallons at the pump.
Georgia consumers have been getting burned at the pump because of the weather to the tune of $123 million, even before gasoline prices reached the boiling point, the report said.
Named in the suit are Murphy Oil USA, The Pantry, QuikTrip, Pilot Travel Centers, Petro Stopping Centers, Love's Travel Stops & Country Stores, Circle K and Alimentation Couche-Tard.
At 60 degrees, a 231-cubic-inch gallon of fuel delivers a certain amount of energy. At 90 degrees, however, the same gallon of fuel expands to more than 235 cubic inches. Because consumers are still paying for 231-cubic-inch gallons, they are forced to spend more moneyand pay more taxfor the same amount of energy, said the newspaper.
A Roman who pumped 10 gallons of gasoline at 90 degrees would be able to drive 196.6 miles if the vehicle is supposed to get 20 miles per gallon. In Alaska, with 60-degree gasoline, someone in Juneau with the same vehicle would be able to drive 200 miles on 10 gallons, the report added.
Nationally, consumers paid more than $2 billion more because of the temperature differences, according to NIST.
NIST researcher Dr. Richard Suiter said 20 to 25 tanks were evaluated in every state to compile the data, but this only shows one snapshot in time.
The suit filed Tuesday in U.S. District Court in Rome claims fuel distributors gain further as they keep the excess tax paid, too. Brought by private citizens and three Northwest Georgia trucking companies, the suit is demanding gasoline distributors return tax revenue the plaintiffs say has been illegally acquired.
While consumers pay tax on the volume they pump, no matter what the temperature, large-scale customers pay tax upfront on gasoline set to 60 degrees. Since the store pays tax only at the 60-degree level, they retain the excess tax revenue.
Besides returning the tens of millions of dollars that the plaintiffs claim has been pocketed by the retailers, this and about 20 similar lawsuits around the country are looking for laws to be changed.
Specifically, the northwest Georgia plaintiffs are seeking the retrofitting of gasoline pumps to fix the problem, the report said.
Consumer advocates cite changes that have been made in Hawaii and Canada. In Hawaii, a base fuel temperature of 80 degrees has been set. As a result, retailers dispense 234 cubic inches per gallon rather than 231. In Canada, where cold fuel once cost retailers money, the industry has supported a voluntary program to retrofit to pumps that automatically adjust volumes based on temperature.
In response to all the legal action, the Congressional Committee on Government Reform's Domestic Policy Subcommittee is scheduled to hear testimony on the issue today. The subcommittee is expected to examine the impact on consumers and attitudes of the oil industry, the paper said.
Click here to view the lawsuit.
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