Proposed Settlement in ‘Hot Fuel’ Claim

A Kansas court has granted preliminary approval for settlement with 28 companies in 2006 lawsuit.

January 27, 2015

KANSAS CITY, Kans. – A Kansas court has given preliminary approval for settlements involving 28 companies involved in "hot fuel" litigation, though none of that will go to consumers, according to news reports.

The cases originated in 2006, when a group of plaintiffs alleged that gasoline retailers were shortchanging customers by failing to compensate for expanding gasoline during warm summer months. They said the gas expands as it becomes warmer, thus consumers get less energy per gallon, though they pay the same amount. Defendants included both small chains as well as large retailers like BP and Exxon Mobil Corp.

The settlements would require six of the companies to pay retailers $22.925 million toward the costs of installing equipment that accounts for the effect of temperature on the fuel. It also would help provide funding for state officials to effectively oversee fuel sales. Eighteen companies will pay $1.577 million total to fund oversight. The remaining four companies agreed to convert a portion of their stations to the new equipment where it is permitted by state law.

A hearing is scheduled for June when a U.S. District Court judge will determine whether to give final approval to the settlements.

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