In The News

‘Hot fuel’ report sheds little heat

"Hot fuel” debaters have sought further information on requiring automatic temperature compensation devices at the fuel pump, but a government report yields little new insight.


The report stems from a request by Rep. Bart Gordon (D-Tenn.), chairman of the Science and Technology committee, who requested the Government Accountability Office examine the hotly debated issue. The Owner-Operator Independent Driver Association advocates requiring ATC devices while the American Trucking Associations opposes them.


United States’ standard measure for petroleum products is 60 degrees Fahrenheit or 231 cubic inches per gallon. The petroleum industry often adjusts for temperature-related changes in wholesale transactions for fuel and in retail sales for other petroleum products.



However, retail fuel is sold at 231 cubic inches per gallon regardless of fuel temperature. Diesel changes 1 percent in volume for every 22-degree temperature change.



Gordon asked the GAO to report on stakeholders’ views on costs to implement the devices and the opinions of stakeholders who would bear these costs. He also wanted reasons some state and national governments have adopted or rejected ATC.

The GAO’s review included congressional testimony and comments from stakeholders from federal agencies and 17 states; interest groups including consumers, truckers and the petroleum industry; and officials from other nations. Among those interviewed were five fleet owners and seven organizations representing independent truckers.


Supporters say extending temperature compensation to retail could provide more transparency in fuel prices, while opponents argue upgrading existing equipment would be costly and pose economic hardship on retailers.


The GAO could not determine nationwide cost to implement ATC and whether consumers or businesses would ultimately pay for this. There is no consensus on the amount of inspection time that would be required. Per pump, an ATC would cost $1,300 to $3,000.


Moreover, Hawaii and Canada, which have the most government experience in temperature compensation of retail fuel sales, have not studied the issue.


A few cold-weather states, including New York and Montana, have banned temperature-compensation devices at the pump, arguing that wintertime “cold fuel” benefits the buyer.


The National Conference on Weights and Measures will decide in January whether next year's annual meeting in July will vote on the hot-fuel issue. This includes presentation of ATC consumer information and an ATC steering committee's recommendation to make the devices mandatory in 10 years.


The California state legislature has required the state energy commission to prepare a cost-benefit analysis and to make recommendations on implementing ATC devices at the pump by Dec. 31.