Oil companies shell out $23 million in ‘hot fuel’ settlement

In warmer months, gas temperatures rise, expanding the volume but not the fuel power.  | Courtesy of Upupa4me/Flickr
In warmer months, gasoline temperatures rise, expanding the volume but not the fuel power. | Courtesy of Upupa4me/Flickr

After almost nine years in courts, BP, ConocoPhillips, ExxonMobil, Shell, Chevron and Sinclair Oil have agreed to pay close to $23 million to retailers for the “hot fuel” problem. A federal judge in Kansas City, Kan., signed off on the settlement on Friday.

The oil companies were accused of knowingly overcharging customers when temperatures rose. Gasoline loses value when it heats up — the volume of the gas expands, but its fuel power remains the same — but prices were not changed to accurately represent the value.

The money will mainly go to reimbursing retailers for installing machines that adjust for temperature effects on fuel.

Read more from the Kansas City Star

 


Tags:, , , , , , , , , , , , ,

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students

Learn more