GenX
06-10-08, - 08:31 AM
Bahamian gas retailers face new challenge
By JAMMAL SMITH, Guardian Business Desk
The never-dull story of increasing gas prices has exposed a new villain: The gas pump itself.
Gas stations are not the ones doing the robbing neither are the petroleum companies. No, consumers are suffering losses due to our hot climate, with temperature playing a big part in the actual amount of gasoline that enters a car's tank and just how much you're charged for it.
That phenomenon has led to 35 class-action lawsuits across the U.S. and calls for Florida gas stations and those in other hot-weather States to introduce "smart" gas pumps. They adjust prices downward as the temperature gets hotter to ensure that you're paying for the same quantity of gas as drivers in cooler States where the temperature is closer to the standard 60 degrees used by oil companies to set gas prices. The Bahamian retailers Guardian Bus-iness contacted Monday were either unaware or unwilling to discuss the new technology that is already mandatory in Hawaii and Canada.
Their hesitance makes them not unlike their Florida counterparts, which as a group, have resisted adopting smart pumps. They point to the cost of refitting their current station pumps. That may change as prices continue to soar and consumers grow increasingly concerned about their budgets and the fact they may be paying more just because of where they live.
Gas expands about one percent in volume with every 15-degree rise in temperature, although that expanded gas doesn't go any further. Given yesterday's temperature in Nassau — 87 degrees, or 27 degrees above the standard 60 degree temperature — that means a driver filling up got slightly less than they paid for, or so the theory goes.
For example, a driver with a 10-gallon tank who fills up at a 90 degree temperature, loses 80 cents worth of gas. If they fill up four times a month, they incur a loss of $3.60 worth of gas, which is almost enough
for another gallon of gas. Even though it may not seem like much, consumers in warmer climates are disadvantaged in comparison to those in cooler ones.
It's an issue American retailers are being forced to take seriously as they find themselves increasingly dragged into court.
Smart pumps are often the remedy being sought by those angry consumer groups.
A few station owners have willingly followed the Hawaiian lead, considering the marketing edge it could give them with drivers.
One brave owner willing to pump $3,000 into buying a smart terminal could conceivably corner the Bahamian market with consumers convinced they're getting a fair deal.
By JAMMAL SMITH, Guardian Business Desk
The never-dull story of increasing gas prices has exposed a new villain: The gas pump itself.
Gas stations are not the ones doing the robbing neither are the petroleum companies. No, consumers are suffering losses due to our hot climate, with temperature playing a big part in the actual amount of gasoline that enters a car's tank and just how much you're charged for it.
That phenomenon has led to 35 class-action lawsuits across the U.S. and calls for Florida gas stations and those in other hot-weather States to introduce "smart" gas pumps. They adjust prices downward as the temperature gets hotter to ensure that you're paying for the same quantity of gas as drivers in cooler States where the temperature is closer to the standard 60 degrees used by oil companies to set gas prices. The Bahamian retailers Guardian Bus-iness contacted Monday were either unaware or unwilling to discuss the new technology that is already mandatory in Hawaii and Canada.
Their hesitance makes them not unlike their Florida counterparts, which as a group, have resisted adopting smart pumps. They point to the cost of refitting their current station pumps. That may change as prices continue to soar and consumers grow increasingly concerned about their budgets and the fact they may be paying more just because of where they live.
Gas expands about one percent in volume with every 15-degree rise in temperature, although that expanded gas doesn't go any further. Given yesterday's temperature in Nassau — 87 degrees, or 27 degrees above the standard 60 degree temperature — that means a driver filling up got slightly less than they paid for, or so the theory goes.
For example, a driver with a 10-gallon tank who fills up at a 90 degree temperature, loses 80 cents worth of gas. If they fill up four times a month, they incur a loss of $3.60 worth of gas, which is almost enough
for another gallon of gas. Even though it may not seem like much, consumers in warmer climates are disadvantaged in comparison to those in cooler ones.
It's an issue American retailers are being forced to take seriously as they find themselves increasingly dragged into court.
Smart pumps are often the remedy being sought by those angry consumer groups.
A few station owners have willingly followed the Hawaiian lead, considering the marketing edge it could give them with drivers.
One brave owner willing to pump $3,000 into buying a smart terminal could conceivably corner the Bahamian market with consumers convinced they're getting a fair deal.