Three individual gasoline consumers and an Oklahoma City business have filed a lawsuit against oil companies and station owners, claiming the retailers are overcharging customers for hot fuel.
Advertisement
Gasoline retailers say the temperature changes average out to little or no effect and that, if successful, the lawsuit could raise prices rather than lower them.
The four named plaintiffs are seeking class-action status and have asked the court for a refund of the perceived overcharge. They also want retailers to install equipment that better measures their fuel sales.
The lawsuit centers on the fact that gasoline expands when hot, reducing the energy provided by a set volume. The expansion means more gasoline is needed at higher temperatures to produce the same energy as gasoline at lower temperatures.
One gallon of gasoline at 60 degrees produces the same energy as one gallon and 2.2 ounces at 90 degrees, the lawsuit claims.
"The sellers of ‘hot' motor fuel are able to pocket these billions of additional dollars in temperature-inflated profits merely because the fuel they are selling is warmer than 60 degrees Fahrenheit, and customers are ignorant of the truth,” the lawsuit claims.
Gasoline retailers say the temperature effects are exaggerated.
"This is a feel-good deal for the consumer, but I don't think there's any basis to it at all,” said Vance McSpadden, executive director of the Oklahoma Petroleum Marketers Association. "If there is, it's very small. It's certainly not billions of dollars.”
The vast majority of gasoline stations in Oklahoma use underground storage tanks, where the temperature generally stays about 60 degrees. Above-ground tanks are more susceptible to temperature changes, but the net effect is negligible because consumers benefit in the winter when lower temperatures cause gasoline to compress, McSpadden said.
The lawsuit is misguided, he said.
"This isn't against the major oil companies,” he said. "The people who are going to have to spend money on this new equipment are individual retailers, generally independent businessmen.”
If the lawsuit were successful, retailers could be required to install equipment that would adjust the sales volume to account for temperature variances. The equipment would cost retailers thousands of dollars, which likely would be passed on to consumers, McSpadden said. The upgrades also could drive some gasoline station owners out of business, he said.
Oklahoma City manufacturing company TEMCO is one of the plaintiffs in the case. Manager Russ Godfrey said attorney Jona R. Hefner asked him to join the lawsuit.
"We spend a lot of money on gas,” Godfrey said. "Any penny we could save here or there would be nice since gas is so expensive now.”
Hefner, who filed the lawsuit, did not return repeated phone calls from The Oklahoman on Tuesday.
The lawsuit names 13 retailers and oil companies as defendants, including Albertsons, ConocoPhillips and Shell Oil Co. The lawsuit says a substantial number of the transactions occurred in the Western District of Oklahoma.
The lawsuit names Dallas-based 7-Eleven Inc. as a defendant, but not Oklahoma City-based 7-Eleven Stores of Oklahoma. The Oklahoma company is a separate entity not affiliated with the Dallas company, which owns marketing rights across the rest of the country.
Thank you for joining our conversations on newsok. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
I don't think tort reform could cover the absurdity of this lawsuit. This is a waste of tax dollars for clerks to even file the paperwork. Gasoline storage tanks are underground, where temperatures are considerably cooler than the street level. The temperature gain(and subsequent expansion)is so small it is almost impossible to measure.
1
Prev
Something to say about this topic? Submit a Letter to the Editor online
Thank you for joining our conversations on newsok. We encourage your discussions but ask that you stay within the bounds of our terms and conditions. Please help us by reporting comments that violate these guidelines. To review our rules of engagement, go to Commenting and posting policy.
Log in below or sign up (it's free).