In an approved settlement for a lawsuit over hot fuel, Costco Wholesale Corp. has agreed to convert gas pumps in some states during the next five years to automatically compensate for expansion in fuel due to changing temperatures, reports the Kansas City Business Journal.
The term “hot fuel” refers to the expansion of gas or diesel fuel in the warmer months. Critics charge that when the fuel expands, the consumer gets less energy per gallon but charges the same price per gallon. Oil companies have argued that consumers benefitted in cold weather because fuel contracts and then contains more energy per gallon than usual. The companies also claimed that it would be too expensive to equip every retail pump with a temperature compensating device.
Since Costco’s settlement, other companies have also reached settlement agreements, including BP Products North America Inc., ConocoPhillips Co., Shell Oil Products US, Casey’s General Stores Inc., Valero Marketing and Supply Co., Sam’s Club and Wal-Mart.
Costco won’t pay a monetary settlement, but plaintiffs’ lawyers have asked for $10 million in attorney fees., reports the Business Journal. Class representatives would get $2,000 each. Judge Kathryn Vratil, who approved the settlement, said she will not consider fees until the other hot fuel cases are settled.
“Settlement discussions with other defendants are ongoing and appear promising,” Vratil wrote.
The Business Journal reports, “In all, class-action claims against motor fuel retailers in 26 states have been consolidated in Kansas.”
Proposed Settlement Would See Costco Address ‘Hot Fuel’ Issue
Fuel and Oil: Related News
4/27/2012 – Costco “Hot Fuel” Settlement Approved
In an approved settlement for a lawsuit over hot fuel, Costco Wholesale Corp. has agreed to convert gas pumps in some states during the next five years to automatically compensate for expansion in fuel due to changing temperatures, reports the Kansas City Business Journal….
4/26/2012 – “California-Only” Diesel Will Come at High Cost for State, Study Says
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4/25/2012 – $20 Million Available for Clean Diesel Projects
The U.S. Environmental Protection Agency announced the availability of up to $20 million in FY 2012 grant funding to establish clean diesel projects aimed at improving air quality and Americans’ health….
4/25/2012 – Canadian Agency Says Fleets Could Save With Natural Gas
Despite the higher upfront costs for engines that run natural gas, The Conference Board of Canada says that converting fleets to natural gas could produce savings of approximately $150,000 per truck over a 10-year period….
4/24/2012 – Three Midwest Truckstops Join Idle-Reduction Plug-In Power Network
Truckers traveling through Nebraska and Iowa now have three more locations at which they can plug in to grid power instead of idling their engines to run in-cab comfort and convenience appliances….
4/24/2012 – Diesel, Gas Prices Drop; Concerns About Europe Drive Oil Prices Lower
Gasoline and diesel fuel prices fell again this week after modest decreases last week, according to the Energy Information Administration’s weekly fuel update. Concerns over Europe’s economy drove oil prices down this week after reports that government debts keep rising….
4/24/2012 – Waste Management Dedicates Illinois’ Largest CNG Fueling Facility
Waste Management of Illinois has dedicated the state’s largest commercial compressed natural gas fueling facility in Stickney, Ill….
4/20/2012 – Three More Companies Settle in ‘Hot Fuel’ Suits
Three companies, Walmart (and its Sam’s Club subsidiary), Valero Energy Corp. and Casey’s General Stores have joined the ranks of businesses settling “hot fuel” lawsuits, reports the Kansas City Star….
4/19/2012 – Clean Energy Partners with Waste Pro USA for New CNG Station
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4/18/2012 – President Calls for Measures to Address Oil Speculation
President Barack Obama proposed new measures Tuesday to address oil market manipulation, calling on lawmakers to increase penalties on those involved in manipulative practices and for increased funding for the agency that’s supposed to police the markets….
4/17/2012 – Diesel Drops the Most Since 2011, Oil Prices Fall After Iran Meeting
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4/16/2012 – Industry Stays Focused on Efficiency as Fuel Costs Rise
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4/11/2012 – Diesel to Average $4.21 This Summer; Crude to Average $112
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4/10/2012 – Love’s Says Bulk DEF Rollout Hits Halfway Point
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4/10/2012 – Diesel Back on the Rise, Oil at Seven-week Low
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4/9/2012 – Three Major Oil Companies Settle in “Hot Fuel” Lawsuit
BP Products North America Inc., ConocoPhillips Co. and Shell Oil Products US have agreed to settle lawsuits accusing the oil companies of profiting from “hot fuel,” gasoline or diesel fuel for which price has not been adjusted for temperature….
4/4/2012 – DEF Pump Price Continues Downward Trend
The average U.S. diesel exhaust fluid pump price fell by 1 cent to $2.74 per gallon between February and March 2012. This continued a marginal downward trend, which has seen the price drop 2 cents since December 2011….
4/3/2012 – Diesel Prices Fall, Rising Oil Prices Spark Talk of Opening SPR
The average price of diesel dropped by half a cent this week to $4.142 per gallon, ending a nine-week trend of price increases. Despite the decline, the price of diesel is still an average of 16.6 cents higher than this time last year, according to the Energy Information Administration’s weekly fuel update….
4/3/2012 – EPA to Allow 15% Ethanol Fuel in Gasoline
The U.S. Environmental Protection Agency approved the first applications for registration of ethanol for use in making gasoline that contains up to 15% ethanol – known as E15….
4/3/2012 – Illinois Plans Nation’s Largest Electric Vehicle Fast-Charging Network
Illinois Governor Pat Quinn and representatives from the Illinois Tollway, 350Green LLC and 7-Eleven Inc. announced plans to create the nation’s largest network of fast-charging electric vehicle stations….
4/2/2012 – Alaska, Producers Reach Agreement on Point Thomson Natural Gas
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3/29/2012 – Irving Oil Offers First DEF Pump in Northern New England
Irving Oil‘s travel plaza in Kittery, Maine is now equipped with a diesel exhaust fluid pump, making it the most northern DEF pump dispenser in New England….
3/28/2012 – Diesel Sees Slight Increase, Oil Ends Modestly Higher
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3/22/2012 – January-February Biodiesel Volume Slips from Late 2011 Growth
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3/20/2012 – Diesel Reaches Highest Price Since Summer 2008
The average diesel price spiked 1.9 cents this week to $4.142 a gallon, its highest price since the summer of 2008, according to the Energy Information Administration’s weekly fuel update….
3/16/2012 – U.S. Fuel Exports to Double by 2015
U.S. exports of gasoline, diesel and other fuels will more than double in the next three years as refiners take advantage of a growing supply of domestic crudes and ship more fuel to emerging markets, according to UK research firm Wood Mackenzie….