"ATLANTA - It’s not just increased demand that sends summertime gasoline prices soaring. It’s also the increased temperature." "As the temperature rises, liquid gasoline expands and the amount of energy in each gallon drops. Since gas is priced at a 60-degree standard and gas pumps don’t adjust for any temperature changes, motorists often get less bang for their buck in warmer weather." "Consumer watchdog groups warn that the temperature hike could end up costing consumers between 3 and 9 cents a gallon at the pump." "The “hot fuel†effect is a matter of simple physics. "U.S. gas retailers ignore the temperature swings and always dispense fuel as if it’s 60 degrees." "The issue has driven trial lawyers to fire off as many as 20 federal lawsuits accusing retailers of using simple physics to take advantage of consumers." http://www.msnbc.msn.com/id/19294463/
And on the flip side, what was being done to the price of gas here in MN this winter when it dipped to 20 below? Seems to me that you'd be getting more bang than what you're actually paying for...
So let's say we start adjusting the pumps for temperature. All that will happen is that gas prices will be adjusted to cover the changes plus the cost of new pumps. If it's an across the board error then it makes no difference to the market. It's only a problem when some stations are affected and not others. Tom
It's an overblown issue that only really matters if you are buying thousands of gallons at a time from tanker trucks that have been in the sitting in the sun all day. Gasoline will expand by about a third of a cup when its heated from 60 degrees to 90 degrees. That's about a fifth of a gallon for a typical Prius fillup of 10 gallons. That's if you are buying gas at 90 degrees, which would require you to buy it shortly after it was delivered to a gas station that had an empty tank. It's far more likely that the gas will be closer to 60 degrees already, since it's stored in underground tanks. If your gas was pumped at 70 degrees, you would pay for an extra 1/15th of a gallon more than you actually got, or at today's $3 a gallon price, about 20 cents worth. But then again, in the winter time, if you bought gas at 50 degrees, you came out ahead. The gasoline industry pays attention to temperature when it distributes gasoline, because the gasoline sits on trucks for extended periods and could reach temperatures in excess of 90 degrees. When you are buying 1000s of gallons of gasoline, a 2% difference that comes with a 30 degree temperature swing is a big deal.
My gut reaction is that this is just BS. Gasoline is stored underground. Anyone with a basement (or root cellar) knows that just a few feet below ground it stays cool to cold. Gasoline pumped from a tank some 6 feet below ground isn't going to increase in temperature anything like 10F on its way into your tank. I will agree that this is a wholesale problem between the gas station and the refinery.
<div class='quotetop'>QUOTE(JimN @ Jul 3 2007, 08:53 PM) [snapback]472742[/snapback]</div> Not everyone lives in New Jersey. According to the Los Angeles Times, the average dispensed gasoline temperature in California is 75* while it is sold as if it were a more compact 60* gasoline. That costs California consumers $228 million a year.
