‘Hot fuel’ putting oil companies in hot seat

…The oil companies are again in the hot seat, trying to fend off claims they’ve been taking advantage of motorists for decades by not taking temperature into account when dispensing fuel during the summer months.

The industry has been adjusting for temperature when selling fuel in bulk at the wholesale level since the 1920s.


But Hugh Cooley, vice president and general manager of national wholesale and joint ventures for Shell Oil Products Co. in Houston, told a House panel Wednesday such recalculations aren’t really necessary at corner service stations, where competition is intense.

“Shell does not believe that the American consumers are harmed in any way by not having temperature adjustment at retail dispensers,” Cooley said.

To better understand the issue, think back to middle school science class: Heat a liquid and it expands. Cool a liquid and it contracts.

But when measuring out a gallon of gasoline, the oil companies assume a temperature of 60 degrees. Gasoline leaves the refinery gate far hotter than that and tends to stay warm, particularly in sizzling towns like Houston.

Midland Reporter-Telegram