Tuesday, June 19, 2007

Utilizing Physics to Bitch About Gas Prices and File Lawsuits

The price of gasoline, which goes up and down, based on the laws of supply and demand, is also affected by the laws of physics, at least according to an AP article titled ‘Hot fuel’ said to cheat drivers, which is made available to us via DailyBulletin.com.

Here’s a bit of what the article relates.

It’s not just increased demand that sends summertime gasoline prices soaring. It’s also the increased temperature.

As the temperature rises, liquid gasoline expands and the amount of energy in each gallon drops. Since gas is priced at a 60-degree standard and gas pumps don’t adjust for any temperature changes, motorists often get less bang for their buck in warmer weather.

Consumer watchdog groups warn that the temperature hike could end up costing consumers between 3 and 9 cents a gallon at the pump.

Okay, I understand the physics laws surrounding increased temperatures, and the resulting less energetic gasoline, and that I may be better pumping gas into my vehicle when it’s 60 degrees or colder due to gasoline’s expansion tendencies, but beyond that, the reasoning for the lawsuits, and congressional hearings, seem rather spurious.

Here’s what one lawsuit, filed in Georgia, stipulates.

The latest lawsuit, filed last week in federal district court in Georgia, claims that distributors have been “unjustly enriched” by tens of millions of dollars. They did so by paying taxes on the fuel based on the colder industry standard but pocketing the taxes collected from customers when the temperature soars, it alleged.

So, if I’ve read the above correctly, I’m supposed to be convinced that gasoline distributors are stealing tax monies from the government, when individuals pump gas in hot weather, because the taxes distributors pay when purchasing gas at an industry standard temperature are somehow less than indivduals pay in hot weather.  Quite convoluted reasoning if you ask me, or am I missing something here?

Posted by John Venlet on 06/19 at 03:48 PM
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