SALT LAKE CITY -- Members of the National Conference of Weights & Measures rejected a proposal Wednesday that consumer groups said might save U.S. motorists between 3 and 9 cents a gallon (between 0.8 and 2.4 cents a liter) at the pump, reported the Associated Press.
Some members of the group of state and county experts voted in favor of a proposal on devices at gas stations that would compensate for temperature differences, but not enough for passage. The proposal targeted the "hot fuel" effect of temperature gasoline volume and energy.
The effect could cost U.S. drivers more than $1.5 billion in the summertime, according to the House Subcommittee on Domestic Policy, which recently addressed it in hearings.
The result was welcomed Thursday by oil companies and gas station owners who said installing the devices would be too costly, and that the science behind the hot fuel phenomenon needs more investigation. "Given that no thorough independent study looking at both the scientific and economic impacts of temperature compensation has ever been conducted, any other decision would have been premature," said Lisa Mullings, president of the National Association of Truck Stop Owners (NATSO), in a press statement.
The group estimates that each retrofitted pump could cost between $1,500 to $3,800.
NATSO said, [The] decisionto seek additional information before requiring costly temperature compensation devices at retail pumps makes sense for consumers and businesses alike.VbCrLf
The group added, Despite claims by certain advocacy groups and some legislators that automatic temperature compensation would help motorists, these devices would actually increase the costs for consumers. These additional costs would result from the installation of the automatic temperature compensation equipment and from the increase in state administrative expenses required to enforce such a program. On the state level, field tests to verify the functionality and accuracy of temperature control devices will require greatly increased inspection time, and pump calibration will have to be checked on a significantly more frequent basis. All of this will necessitate higher fuel taxes.VbCrLf
NATSO said it continues to support Representative Bart Gordons (D-Mich.) request for a study on the issue to fully understand and evaluate the impact of temperature variation on consumers. The association would like legislators to support efforts to obtain an independent, government-funded study designed to analyze all aspects of fuel temperature, including both scientific and economic impacts.
Key decision-makers have a responsibility to act in the best interest of consumers by using sound science and economics to determine the actual impact of automatic temperature compensation,VbCrLf Mullings said. Before we impose potentially crippling costs on retailers, consumers and state authorities, government has a duty to ensure there is compelling data to support such a radical change in how fuel is dispensed in this country.VbCrLf
Rep. Dennis Kucinich (D-Ohio), chairman of the Domestic Policy Subcommittee, said, This is a defeat for consumers and for the economy, which requires accurate measurement for its proper functioning. Unfortunately, it seems that the National Conference on Weights & Measures could be incapable of fulfilling its role of ensuring accurate measurements, and that would send a clear signal to Washington that it might require Congress to take action.VbCrLf
The Domestic Policy Subcommittee held a hearing on June 8, which showed consumers will be paying an estimated $1.5 billion in ghost gasVbCrLf just this summer alone.
My subcommittee will continue its investigation into the hot fuels issue, and I am announcing our hearing on July 25, 2007, with senior executives from ExxonMobil and Shell to explain what appears to be a double standard in how the oil industry measures and sells gasoline,VbCrLf Kucinich said.
One of the questions that the July 25 hearing will address is why it appears the Canadians can get a more accurate measurement, but the people in the United States cannot, he said.
Click here to view the hearing.
Click here to read the testimony of Michael Cleary, chairman of the National Conference on Weights & Measures.
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