Committe on Oversight and Government Reform pt 2

| Consumer Protection, Economic Losses

ExxonMobil and Shell Answer Questions About Hot Fuels

The oil industry has known for 100 years that gasoline expands with temperature. As it warms, gasoline expands by volume but not by weight or energy content. Since the 1920’s, the oil industry has taken temperature into account for wholesale transactions, and uses a 60 degree Fahrenheit standard when measuring gasoline at wholesale. However, retail sales are not temperature adjusted. As a result, consumers pay a Hot Fuel Premium when gasoline temperatures exceed 60 degrees, as they do throughout the country during the summer.

 

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