June 07, 2007
Expanding Gasoline Prompts Lawsuit

From today's Rome News-Tribune:

Plaintiffs claim retailers are paying taxes on gallons of colder gasoline, which take up less space, and then keeping extra taxes when heat expands the fuel into more, less-efficient gallons at the pump.

Even a federal lawsuit filed in Rome has raised the issue of how the temperature of fuel when pumped can cost consumers — especially those in warmer states.

National Institute of Standards and Technology data shows temperatures of fuel at gas stations around the country average about five degrees warmer than the federal standard temperature of 60 degrees at which gas is priced to sell.

At Georgia gas stations, according to the federal agency that presented the data, that temperature is 12 degrees higher at 72 degrees.

The physics behind the problem is fairly simple.

At 60 degrees, a 231-cubic-inch gallon of fuel delivers a certain amount of energy.

At 90 degrees, however, the same gallon of fuel expands to more than 235 cubic inches.

Because consumers are still paying for 231-cubic-inch gallons they are forced to spend more money — and pay more tax — for the same amount of energy.

In practical terms, this means a Roman who pumped 10 gallons of gas into his truck at 90 degrees would be able to drive 196.6 miles, if the vehicle is supposed to get 20 miles per gallon.

A pdf of the suit is here.

Posted by E. Frank Stephenson at 09:21 AM in Law

The statesman who should attempt to direct private people in what manner they ought to employ their capitals would not only load himself with a most unnecessary attention, but assume an authority which could safely be trusted, not only to no single person, but to no council or senate whatever, and which would nowhere be so dangerous as in the hands of a man who had folly and presumption enough to fancy himself fit to exercise it. -Adam Smith

Our Bloggers
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Craig Depken
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden

Blogroll

Search

Archives
By Author:
Joshua Hall
Robert Lawson
E. Frank Stephenson
Michael C. Munger
Lawrence H. White
Edward Bierhanzl
Craig Depken
Ralph R. Frasca
Tim Shaughnessy
Edward J. Lopez
Brad Smith
Mike DeBow
Wilson Mixon
Art Carden

By Month:
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004
September 2004
August 2004
July 2004

Powered by
Movable Type 2.661

Site design by
Sekimori

XML