The study found that gasoline in California was being sold at an average year-round temperature of 72 degrees. Gasoline expands as it warms, about 1 percent for every 15 degree increase, and because of a nearly century-old petroleum industry standard, pumps throughout the nation are set to a 60 degree point of sale standard.
This means that Californians receive about 1 percent less gas than they pay for, according to the study.
While this may represent less than 4 cents per gallon, Californians purchased 15.7 billion gallons of gasoline last year according to the State Board of Equalization. Based on $4 a gallon fuel, Californians could be getting shorted out of $626 million a year due to the 'hot fuel' situation. Nationwide, the issue costs consumers up to $3 billion, according to the Owner Operator Independent Drivers Association, which represents truck drivers around the nation.
This week, the National Conference on Weights and Measures is meeting to consider doing something about the 'hot fuel' problem. One option they may consider is requiring all gasoline pumps to measure the ambient temperature and automatically adjust the price per gallon accordingly. Canada already enforces such a regulation and 95 percent of the pumps in Canada are fitted with the automatic devices.
The petroleum industry, however, believes that the automatic devices are not required and that prices balance out over a yearly period for most drivers. In addition, the industry claims that the devices are expensive and will likely raise the price of fuel further.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now