• Three ‘Big Oil’ companies agree to settle hot fuel lawsuits

    April 10, 2012
    2 min read

    Three of the country’s largest oil companies — BP Products North America, ConocoPhillips Co. and Shell Oil Products US — have agreed to settle lawsuits accusing them of profiting from “hot fuel,” which costs consumers of gas and diesel an estimated $3.5 billion a year

     The term “hot fuel” comes from the fact that gasoline and diesel expand in warmer months. Vehicles operated on warmer fuel get poorer fuel mileage and according to the Kansas City Star, oil companies dispensing the hot fuel cost consumers dearly.

    The Star first reported the issue in a series of articles in 2006 that resulted in class-action lawsuits accusing oil companies and fuel-station chains of being involved in the practice.

    After five years of pretrial proceedings, the first of the suits was scheduled to go to trial next month in federal court in Kansas City. But the three oil companies told the U.S. District Court that “they have reached a binding settlement agreement” with the plaintiffs who filed the lawsuits, according to a court document signed by Judge Kathryn H. Vratil.

    The settlement could contribute to a fix for hot fuel in which pumps adjust the amount of fuel pumped depending on its temperature. But details of the settlement, which would apply to all the class-action lawsuits filed in various states, weren’t available. It still has to be approved by Judge Vratil before taking effect, the Star reported.

    “I can verify that a preliminary settlement has been reached in the temperature-correction cases around the country,” said Kayla Macke, a spokeswoman for Shell.

    “The settlement agreement is designed to fully resolve the cases against the parties to the settlement.”

    About the Author

    Deborah Whistler

    Voice your opinion!

    To join the conversation, and become an exclusive member of FleetOwner, create an account today!

    Sign up for our free eNewsletters

    Latest from Emissions & Efficiency

    Windrose Technology
    Windrose Technology Class 8 truck
    Charging technology, although many fleets still find it complicated, is improving. Here are two innovations—one in a vehicle and the other with charging infrastructure—that look...
    PBS News
    Trump speaks before signing resolutions
    Trump signed three resolutions to terminate CARB’s waivers for Advanced Clean Trucks, Advanced Clean Cars II, and Heavy-Duty NOx. The resolutions are a major blow to California...
    331398883 | Snehitdesign | Dreamstime.com
    Gas prices drop while diesel sees minor increase: Regional trends and current averages