Costco to change how it sells gas

[KansDem]

Source: AP

KANSAS CITY, Mo. (AP) — KANSAS CITY, Mo. (AP) A major U.S. gasoline retailer has agreed to change how it sells fuel to adjust prices when fuel temperatures rise above 60 degrees.

The agreement by Costco Wholesale Inc., filed with the U.S. District Court of Kansas late Wednesday, would end its involvement in a lawsuit filed by consumers who allege U.S. oil companies and gasoline retailers have overcharged consumers for years by selling "hot" fuel that contains less energy.

Under the agreement, which requires a judge's approval, Costco will install pumps in 14 southern and southwestern states that adjust the price of fuel when temperatures rise above the industry standard of 60 degrees.

The company also will install the equipment at locations in seven other states and the District of Columbia if it ever begins buying temperature-adjusted fuel wholesale in those areas.

Read more: OregonLive

[customerserviceguy]

1. I'll tell you this

Do not top off your tank while filling in the early morning on a day when it is going to get hotter. That gas expands, and you will have it leaking out of your vehicle.

Security cam at a microchip plant where I worked caught that.

[Igel]

2. A small exansion, but the pipe leading to the gas tank is thin.

By my reckoning, 60 degrees to 90 degrees (F) gives something like a 2.85% expansion.

The thing is, the temperature of the gasoline in the underground storage tank isn't going to rise much during the day, nor will it rise much going through the pump.

The temperature might rise a bit (or more) in the storage tank over the course of, say, late spring to july.

[TacticalPeek]

4. 60 degrees to 90 is probably more than they figure on, but smaller differences still add up.

Part of the idea of the law suit is that the retailers pay for temperature-adjusted fuel from the jobbers, and the end customer wants the same consideration. The expansion/contraction difference varies by time of year, and by fuel type - gasoline v. diesel.

The fuel is billed in gross and net (adjusted) gallons, and you pay (in almost all cases)the net. On some old bills of lading, in December I see unleaded at 6550 gals gross, 6536 gals net, a .0021% drop. Then in August I see unleaded 6550 gross, 6415 net, a .0206% drop - bigger by a factor of 10.

Plus, tracking an inventory whose nature is to 'increase' or 'decrease' automagically has its own challenges.

The difference per fill-up is small, but it's every time.

[high density]

3. I feel much more ripped off by the 10% ethanol content. NM