WALL TOWNSHIP, N.J., July 4, 2007
"Hot Fuel" Costing Consumers Big Bucks?
Some Say Temperature Difference Costs Drivers Billions
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Play CBS Video Video Is 'Hot Gas' Costing Drivers? Consumers may be paying more for gas when the weather heats up because of a phenomenon called "hot fuel." Susan Koeppen explains.
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(AP)
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Interactive Gas Prices State-by-state averages, tips to improve mileage and a look at what fuels prices at the pump.
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Interactive Motor Away Things to know before hitting the road.
But what if we told you that you might be paying more, literally because of the temperature?
As CBS News correspondent Susan McGinnis reports, this phenomenon is called "hot fuel" and it's become a burning issue from Main Street to Congress.
Bill Younger has been driving trucks for 56 years. He's been on the road about as long as he's been old enough to drive. Even in his 70's, he still clocks about 600 miles a day.
"I've known about the hot fuel issue for about four or five years," he says.
And this little known issue has this lifelong driver worried about losing his livelihood.
Hot fuel boils down to simple physics: when temperatures rise, gasoline expands. So on hotter days, you're getting less usable fuel from a gallon of gas.
But gas is bought by retailers based on a standard temperature of 60 degrees. When it's hotter than that, the argument goes that drivers end up paying the difference.
On a 90-plus degree day, McGinnis decided to take a measurement of the gasoline's temperature – the thermometer settled at 78.5 degrees, a lot higher than the 60 degree standard.
Consumer groups say the difference could cost drivers three to nine cents a gallon more at the pumps, totaling more than $1.5 billion this summer, $2.3 billion for the year.
That's making it a hot issue from the highways to Capitol Hill, where hearings recently got heated over the issue. And about 20 federal lawsuits have accused retailers and distributors of unfairly profiting from hot fuel.
Bill Younger is one of the plaintiffs. "It should be 60 degrees, that's what the government says it's supposed to be," he says. "You're not getting what your paying for."
An oil industry trade association declined comment, but does say more research is needed. They defer to retailers.
Station owners say the only way to fix the problem is to retro-fit pumps with pricey equipment that adjusts for temperature changes, something they say would cost thousands of dollars per pump.
"The average retail station owner who's going to have to spend a lot of money on expensive pumps is really making only a couple of cents in net profit on gasoline," says oil analyst Tom Kloza.
Kloza says that would punish the wrong culprit. "At the end of the day, we're talking about a thimbles' worth of gasoline sometimes when people are fueling up in hot temperatures. And I don't think at the end of the day that makes a difference in getting us out of this energy mess that we're in," he says.
Try telling that to Bill Younger. He fills up two to three times a day and believes everybody loses as a result.
"This isn't just for me. This is for the whole trucking industry. The cost of groceries goes up. Anybody who gets anything from a truck, which is everybody. I mean, if you got it, you eat it, you wear it, whatever. It was brought to you by a truck. So somebody's paying for it. And 'who' ultimately is the consumer," Younger says.
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kesac4650 said, "The consumer pays for everything. He always has, and always will. If he wants it he pays... If it costs too much, he will do without.
The high functioning anti-socials, you know the high society sociopaths who push these rationales in defense or promotion of their callous greed, the Marie Antoinettes as you pointed out are really no different from the thug that breaks into ones home and steals using the rationale, I'm bigger, and stronger and carry a gun. Of course the high functioning sociopaths ruling society these days can't see the comparison but a higher power really sees no difference.
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Good point. Why are we arguing about this?
This is another way for Big Oil to screw us over.
It's time for a revolution.
Walk, carpool, ride a bike, take the bus, get a fuel-efficient car.
Stop spreading your cheeks for The Man.
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This is a variation on Marie Antoinette, when told "The people have no bread!" Smiling coldly at her own wit, the Queen snapped, "Let them eat cake!"
Your comment is people always are in need of something, so this is not human misery but a mere market equation-- a dry exercise in market mechanics. The blind faith in The God of Markets doesn't explain the fear and pain in the faces of investors now-- or back in 1929.
Your indifference to price burdens on your fellow citizens is clear enough, but should we expect to see you smile the next time you are robbed by a monopoly market?
One of the basic tenets of capitalism is the market continually enriches its players. The truth this holds is very small, indeed, at times. Lessez faire capitalism-- ie. greed unrestrained by social democracy-- midwifed revolution and the despair that produced Hitler and Stalin and a host of other sourges.
It is only intelligent, responsible, community-sensitive capital that true capitalists might celebrate. Your view is only social Darwinism, poorly disguised.
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Your whining post about liberals is the only whine seen on this page. The rest of the comments concern Big Oil crooks and con artists masquerading as gentle, beneficient patrons to American consumers. In fact, just a decade or so ago, these crooks scrapped many of their reserve refineries so there would be insufficient capacity to meet consumer demand, thereby driving prices through the roof.
Big Oil strives to maintain monopoly control over America and exploit this country's vulnerability to being held (up) over a barrel of oil. They are no better-- and probably worse-- than any foreign country which tries to hijack our energy market in this fashion, because Big Oil hurts its own citizens.
This behavior makes oil corporations into enemies of the United States. Despite $ billions $ in excess profits taken out of the budgets of average American households, the oil industry is quite content at the distress its skyrocketing prices cause their fellow Americans.
See Bush and Big Oil--2
Curiously, Big Oil has people who share their antipatriotic values, among them most (but not all) of the GOP. En masse, however, the GOP voted against any measures to divert even some of their huge, new gas profits into research on energy alternatives. Big Oil simply doesn't want oil alternatives, now or ever-- it cares only about robbing the rest of us.
Your comment about Big Oil needing more money to develop new oil sources is laughable. BP was cited by congress last year for failure to do basic maintenance on its own Alaskan pipelines. In view of its huge income, BP's failures are compelling proof the oil industry spends little money on anything-- let alone exploration and development
Liberals and conservatives with intelligence and foresight favor ending our national dependence on oil-- period. Even if our oil assets last a while, oil is non-renewable and not the long-term answer to our energy needs. We need now to start developing one, and stop making excuses (and foreign policy) on our addiction to oil.
Meanwhile, Bush and most of the GOP is huddled with Big Oil, and only too happy to postpone realistic, immediate measures to avoid continued oil crises. By now, what should Americans expect from Bush and (most of) the GOP, if not more crises?
We have had warm gas, every summer since there has been gas to become warm.
They will whine about high gas prices, and then whine about proposals to find more oil.
STOP GLOBAL WHINING!!!
STOP GLOBAL WHINING!!!
HEY, HEY, HO, HO, GLOBAL WHINING HAS GOT TO GO
HEY, HEY, HO, HO, GLOBAL WHINING HAS GOT TO GO
If any of you NeoCommies think I'm being ridiculous with the above chants,
Congratulations, you get my point
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Paying the lights,rent.etc or puttting gas in the car and maybe having to live in it. Maybe it is time to use mass transit. Get cars that don't use gas. Dear it is running out and when it does it is gone forever.AND WHEN THAT HAPPENS IT WILL A WAR ZONE OVER WHAT LITTLE GAS THERE IS. It don't take brains to figure that out. More cars the faster it is used up. Most are too blind to it. I 52. We are multi diaabled. I am living on $500.00 a month now that is fixed income young man and I earnt my ss. I won't pay $3.00 for 2 apples. Yes I speak for me no one will.
All meters (and possibly pumps at gas stations) would have to be phased out. Those costs, of course, would be passed on to the consumer.
So much for saving a little at the pump after fixing this problem.
Posted by MichelleM99"
Oh get real- arent we ALL on a "fixed income" honey, at least when you get old enough to collect SS's fixed income checks you no longer have;
1) A mortgage
2) Kids at home
3) You don't drive to/from work twice a day any more.
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There is only one answer for Mr. Kloza-- at the end of Kloza's figurative day, Big Oil is millions richer-- billions over the whole season-- and all money unfairly taken from consumers.
You can bet the oil barons would cry foul if consumers were able to find gasoline at temperatures below 60F. Happily for oil corporations, underground temperatures rarely fall that low at station tank levels, in even the northern latitudes of this country.
What a relief! That kind of thing could end up costing oil companies a lot of money.
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