Hot Fuel

That “you get what you pay for” concept is often the case unless you are buying gasoline.

If you’re at the pump, the accuracy of the aforementioned maxim can literally be measured with a thermometer and the magic number is 60 degrees Fahrenheit.

If the temperature is above the 60-degree threshold, you’re being taken to the cleaners — below and you’re sitting pretty.

The topic was the subject of two House Oversight and Government Reform subcommittee hearings, to examine the high gasoline prices, specifically addressing the “hot fuels” and double standards for consumers.

The purpose of the meetings, specifically that held by Government Reform, was to ascertain how two of Big Oil’s biggest players, ExxonMobil and Shell, justify selling gasoline on a temperature compensated basis in Canada and on the U.S. wholesale market, but refuse to do the same for retail U.S. customers.

“(The companies) said that they can’t use temperature compensation equipment in the U.S. because it is illegal,” said Congressman Dennis Kucinich, D-OH, after the hearing. “Unfortunately for the oil companies, the state legal authorities disagree.”

The issue is based in science. Physics dictates that fluids will expand when heated and contract when cooled.

According to a report from the subcommittee, consumers paying $3.50 per gallon at the pump when the temperature outside is 90 degrees Fahrenheit might as well tack on 7 cents for each gallon to account for the expanded volume.

That may seem a drop in the bucket, but the subcommittee estimates that over time consumers will pay an additional $1.5 billion per year.

Oil companies have factored the effect of temperature on oil since the 1920s, according to a subcommittee report, but have never made a similar adjustment for consumers.

It’s not for a lack of technology.

Automated Temperature Compensation technology was created to adjust for “hot fuel” at the pump. However, the U.S. industry has been reluctant to install the equipment at gas stations, citing legal reasons.

Fuel prices are on the rise across the country and Brownsville is no exception. On Saturday, most city service stations were selling gasoline for $2.95 per gallon.

Still, the city enjoys one of the lowest per-gallon prices anywhere.

That’s of little solace to consumers who are powerless to stop the hemorrhaging of their wallets. The fact is, U.S. drivers pay more at the pump as the mercury rises.

But, while most regions will start recouping money lost at the pump as temperatures cool, if they aren’t already, Brownsville will continue losing as temperatures aren’t expected to dip below 60 degrees for at least the next 10 days.

Executives from ExxonMobil and Shell testified before the Policy Subcommittee in July after refusing to do so in June.

Ben Soraci, U.S. Retail Sales Director, ExxonMobil Fuels Marketing Company testified that before ATC technology could not be installed at service station pumps without changing laws governing weight and measurement and at significant expense to retailers.

There are currently numerous lawsuits against oil companies and gasoline and retailers for overcharging on “hot fuel.”

Said Kucinich: “I am left wondering if the oil companies are really saying no matter what the law is, and what the science says, they just don’t want to take temperature into account when selling gasoline to American consumers.”