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Apr 24, 2009 -- Costco to auto-adjust price of gas based on temperature

RIP-OFF ALERT: With much of the nation beginning to warm up, Clark wants to put out a warning about motorists being cheated at the gas pump.

At temperatures above 60 degrees, gas expands in underground tanks and contains less energy than it would at lower temperatures. Some sources estimate consumers lose about $2 billion annually because no one is making a price adjustment at the pump based on temperature.

Now one major retailer is reversing that. According to The Los Angeles Times, Costco will install devices to auto-adjust in hot states such as California, Arizona, Nevada, Georgia, Florida and others.

Only the state of Hawaii currently requires true measurement of fuel at the pump based on temperature.

Apparently, some states even have their regulators in so tight with the oil companies that they outright ban pumps that adjust the price based on temperature!

Congrats to Costco for breaking with the industry ranks on this one.

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • Costco
    Good job Costco. Always doing great things. I had no idea this could happen. Thanks Clark.
  • gas
    Good idea, wish the would consider the NW.
  • Tanks, frostline, etc
    My guess is fuel storage tanks aren't below the frost line, if such a thing even exists in Georgia or other southern states!

    That being said, isn't it ironic that Hawai`i is the only state with this kind of law, yet it has some of the most consistent temperatures of any US State? lol @ that
  • Fuel Tmperature vs Volume
    This should be a concern everywhere. All military aircraft fuel systems report various paramters that are used to calculatethe actual fuel in the fuel and oil tanks.
  • banned?
    Does anyone know what states ban pumps based on temperature?
  • gasoline temperature
    I was under the impression that below the frost line the earth's temperature is a constant 50-some degrees F. This is what geothermal works on. So how can higher temps above grade make a difference?
  • Tip
    I don't know how much it would help, but getting fuel in the morning when the temp is at it's lowest would be the best thing to do if you can't get to Costco.
  • Let's see if walmart follows costco
  • Fuel Hoax
    There is no significant change in gasoline related to temperature. The change would be mesuarable only in volumes of several thousand gallons. Variance would be more significant in in diesel fuel. However, unless your buying in great quantities, you will not see any change in small volumes up to 50gals.
  • Moonshine Whiskey
    Ethanol is not that different than methanol. Methanol is CH3OH the simplest and poisonous alcohol. Ethanol is C2H4OH2 the next simplest, has more energy, and is drinkable. Ethanol or Ethyl Alcohol is what we imbibe and is also known as Moonshine Whiskey.
  • Costco
    I live in a very poor rural area and we do not have a Costco but need it as much if not more than other areas. A large majority of our population must travel long distances to their workplace. Glad you are there for others and we will hope for the future!
  • Gas Info
    Nice comments below.

    First. Not all gas is stored below ground. Many gas stations have aboveground storage tanks. These tanks can heat up tremendously in the summer. Temperatures can reach ambient temps of 100 F.

    Second. The underground storage tanks are going to see temp variations from fuel deliveries as stated below. Which can be noticeable depending on seasons and outside temperatures. They will take a while to even out and become a stable temperature. At a high volume facility (Place that sells a lot of gas) the temp may never level out.

    Third. Dispensers that are mis calibrated are a huge problem. Due to continuous use the dispensers may dispense fuel at different rates than originally programmed.
    If dispenser meter is off by just one cubic inch per 5 gallons, you give away almost one gallon per one thousand gallons pumped. If you pump 50,000 gallons a month without getting the meters recalibrated, you give away 43.29 gallons every month. At over $3.50 per gallon it will cost the store over $152/month or $1818/year.
    If your meter is off by 6 cubic inches (Which is the allowed limit in most states) the store is giving away around 260 gallons of fuel per month at over $3.50 per gallon it will cost the store over $910/month or $10,920/year.
  • Ethenol in your Boat Tank
    If you are using this in your boat, be very careful about the high water content that WILL accumulate in the gas tank. Ethanol will bond easily with the water found in the air... be sure to use a product to remove this water (about $2 from any auto parts store). Also the ethanol based gas will start to break down in about 8 weeks. Try to use up what you buy within 2 months or less. Ethanol is such a rip!
  • Gas mileage
    To the guys comparing winter mileage to summer mileage. You generally get better mileage in the summer because in cold weather you car burns a richer mixture until it is completely warmed up.
  • warm temps and gas fill ups
    Way to go Costco!! That's why we only get our gas there.......they take good care of their customers.
  • Gas...
    Thanks COSTCO!! I wish we had one in our area of town!!

    Kaufman County, Texas.
  • gas temp
    The amount you're being cheated out of by temp variations is minuscule compared to what you're losing because of bad pump calibration. Gas pumps off only 1 or 2% cost the consumer millions which goes into the pockets of the gas retailers as illicit and easy extra profit.
  • gasoline
    I agree. The temperature of an underground tank is by design relatively constant, so the density of the gasoline being pumped in the summer may be a little bit lower than that in the winter, but not much.

    What people should be outraged about is that big AG is asking EPA to now allow up to 15% ethanol in our gasoline, because their profits are down (the limit is currently 10). Gee, don't we all need to have even higher food prices AND get lower gas mileage? EPA has even stated that more testing is needed on the ethanol to see if it damages our engines. They should also care about our gas mileage as a result of ethanol, but they don't seem to be addressing that. It has also been said that it takes more energy to make a gallon of ethanol than a gallon of gasoline. Wasn't that part of the objective to use LESS energy to make our fuel, not more? I think the ethanol thing is the biggest scam we have going, and it was all designed to line the pockets of big AG.
  • The loss due to temperature is insignificant...
    ...compared to the rip-off that is Ethenol. Since Ethenol has only 2/3rds of the heat content of gasoline, it is the federally mandated mixing of Ethenol with gasoline that is really robbing us, both at the pump and through our tax dollars that subsidize it. And it actually contributes more to CO2 emissions as well.

    If Costco really wanted to help us out, they'd find a way to sell us Ethenol-free gasoline.
  • Rip-Off Gas Alert
    As a U.S. citizen, paying a very large tax obligation, shouldn't I expect my over priced government to protect me!
  • Gas expansion
    If the temperature underground stays a constant 55 why are we being told the temperature of the gas can go higher? I'd like to understand the variation if there is one.
  • The main stream media is at it again.
    There is so much mis-information out there and add in the class envy portion and that will give wacky results. And throw in politicians looking for some camera time.
    The temp difference amounts to about the amount an ant pees.
    All companies are in business to make money.
  • To the guy with better mileage in summer
    Check your tire pressure in winter, its probably too low.
  • Get your facts straight about alcohols
    Indy cars don't use ethanol, they run on methanol, a totally different animal Bubba. Ethanol can corrode parts and ruin seals in fuel systems not designed to use it.
  • Fill up in the a.m.
    I drive 150 miles round trip to and from work. I have noticed a few things you can do to increase your fuel mileage.I drive a Civic ,s o not sure how this might effect your SUV. Do your best to fill your car tank as early in the morning as you can. Using an air cleaner that you can clean does not improve your gas mileage that much to justify your cost unless it will pay off from not having to an air filter ever 6 months. Change your oil to manufacture recommended ,which is usually 5w30. Change your spark plugs regularly. tire pressure will not effect gas mileage but will make the car safe and extent your tire life.

    Oh and JD Adams chill out Indycar uses 100% ethanol(alcohol) and the cars go 200+ MPH and will not void our warranties(sky is falling?). It is our future. Gas mileage is better in the winter because the gas is denser and so is the oxygen in the air.
  • fuel temperature rip off
    please note that OOIDA an independent trucker group has run articles about Flying J truck stops alledgedly heating their fuel to make it expand, in their trade magazine LAND LINE. Clark Howard may want to contact then for more info at ooida@ooida.com
  • Gas and oil
    Lots of great comments. The reason Oil companies have the largest profits of any other companies is simple and often misunderstood. Oil is the worlds largest commodity. For the confused folks out there, that means oil is the number one item sold. Coffee is the number two commodity sold in the world. So it only makes perfect sense that Oil companies that sell the number one commodity have the most profits. There is nothing wrong with that. Without profits means no jobs, and no stock dividends...Everyone needs profits!
  • Why do I use less gas then?
    I drive 150 miles a day. During the spring and summer, I use about 1/2 to 1 gallon less a day then I do in the winter. Why? I feel I get a better deal as the summer rolls by.
  • Regarding comment by money tree
    The ground temperature is relatively constant but when gas is delivered to the station it is warmer in the summer than the gas in the ground. Most gas stations get gas delivered daily. Gas temperatures can vary depending on how long the gas has been in the ground and the temperature of the gas when it was delivered. Think about when you run the hot water and put it in a glass. Water right from the facet is hot but if it sits a while is at room temperature. It all depends on when the gas was delivered.
  • expanding petrol
    Many of the comments comment on the gas in the ground. Yes you get the gas from the tank in the ground but most gas stations gas gas delivered daily. The temperature in tankers can vary significantly and fresh gas in the tank can warm the gas and decrease the amount you get.
  • Pump price of gasoline
    I would like to know which states ban the practice of pumps adjusting the price based on temperature?
  • expanding petrol
    The gas tanks should be buried deep enough to maintain the same underground temp year 'round. Where I used to work our gas tanks were 10'deep, in which case the only expansion that's going to take place is in the vehicle's gas tank.
    Any science geeks out there that can correct me? I'd like to know if I'm on the right track or not. Thanks.
  • Cost savings
    The big oil companies and government regulators allow us to get screwed so big oil gets maximum profits in many ways, pumping temperature fluctuation being one of the lesser ways. Ethanol additives that rob you of gas milage, cost less than gas, and no savings are passed on to the consumer. Matter of fact when ethanol stocks are low the big oil people use it as an excuse to raise the price at the pump, just like the summer blend of gas that they are required to use in many states, Why? are catalytic converters and emmision control systems on cars not enough? they shut down refineries for weeks to change blends which is one of the biggest ways they raise the price at the pumps....they control the supply by cutting production when demand is low, so even if everyone carpooled and cut demand by 50% they would reduce refinery production to keep the prices the same..after $4 gas prices americans cut demand, so big oil cut the amount they refined..Low prices would be happening right now if refineries were cranking out 100%...but that would give them less profits when they change again for winter blend and raise prices at the threat of a colder winter or the possibilities of hurricanes disrupting supply, it's a lot easier to go from $2 to $4 than to have $1 gas all summer and try to go for $4 to keep them having THE BIGGEST PROFITS OF ANY COMPANIES EVER.
  • We're being ripped off
    Extra alcohol in the gasoline is a big problem here in CO. I rented some trenching equipment last week and on the way back to the rental company I topped off the gas tank per the rental agreement. The guy at the rental yard opened the gas cap, gave me a dirty look, and asked me where I bought the fuel. I told him and he then asked me why I had filled the tank with E85 instead of gas! To settle the spat I showed him the CC receipt from the Shell station that said I bought regular unleaded.

    It seems even "regular" gasoline now has enough ethanol mixed in to make people suspicious. Ethanol is damaging to equipment not designed to use it so I can understand the reaction at the rental store, but hey what am I supposed to do? The #@$! refineries are cheaping-out the gasoline we buy with ethanol.
  • More hot air...
    The temp of fuel stored underground stays relatively constant, so no one is getting ripped off for much. Some swear buying fuel at 3 a.m. is a better deal. I say the difference is a percent or two at best, not enough to bother with. I'm more concerned with Congress allowing oil companies to cut gasoline with even more ethanol, up to 15% is proposed. There goes millions of new-car warranties! Worse, fuel mileage will drop even more, as alcohol is less effiencent than gasoline. (Think adding a quart or two of water to your fuel tank with every fillup - it's like throwing a wet blanket on a fire.) I'm much more concerned with what Congress is doing to my wallet than the tempurature of the fuel I'm pumping.
  • Gas
    Every little bit helps, especially when you're driving a big gas hog. Maybe you could pump all your gas in the winter and save it in some tanks on your property until summer and then fill up! All you need is your own tanker truck and storage tanks.
  • Gas Volume
    What is left unsaid in this article is whether or not you get more gas for your money when it gets real cold. At zero do you get more for your money than at 60 degrees? I'll bet the answer is yes.
  • Let's run the numbers, do the science...
    Nobody has said HOW MUCH the volume of gasoline varies. One source gives a coefficient of expansion of 0.0005/F, which means a 1% volume change per 20 degrees of temperature change. And HOW MUCH does the temperature of gasoline coming out of underground storage tanks actually vary? I'd guess it's 40 F in the dead of winter and 80 F in the heat of summer, maximum, meaning there's at most 2% variation. We ignore price fluctuations much bigger than that all the time, and anyhow, we get a different kind of gasoline in the summer than in the winter (a slightly different mix). I wouldn't want to mandate a more expensive kind of gas pump just to deal with a 2% discrepancy that is already accounted for in the difference in cost between summer and winter gas.
  • Costco
    Left out of my previous post was the fact that lawyers always looking for a way to make a buck took this report and filed a class action lawsuit against the oil companies. Costco wimped out and settled.
    This is not a victory for consumers but a victory for politicians and law firms made to look like a victory for consumers, yawn.
    Support thr Fairtax and a very real part of the cost of gasoline such as imbedded teaxes when inacted would disappear. Gas goes down in price big time! Score!
  • No Way
    This is the result of congressional reports to the public on how private oil companies trade among themselves using a standard of volume at 60F but sell to the customer on temperature volume as pumped. For the individual the amount is minuscule and only looks like a lot on a scale of millions. These companies have the right to sell however they please but leave it to politicians to meddle.
    Underground tank temperatures stay pretty much the same temperature year round due to geothermal radiation. The thermal expansion coefficient of gasoline due to very minor temp changes wouldnt matter much unless you are a politician trying to demonize private business for your own political gain and power. It kind of draws attention away from the very real and large amount of tax imbedded into each gallon sold! Where is the outrage and news headlines?
    Support the FairTax Act!
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