In an approved settlement for a lawsuit over hot fuel, Costco Wholesale Corp. has agreed to convert gasoline pumps in some states during the next five years to automatically compensate for expansion in fuel due to changing temperatures, reports the Kansas City Business Journal.


The term "hot fuel" refers to the expansion of gasoline or diesel fuel in the warmer months. Critics charge that when the fuel expands, the consumer gets less energy per gallon but pays the same price per gallon. Oil companies have argued that consumers benefitted in cold weather because fuel contracts and then contains more energy per gallon than usual. The companies also claimed that it would be too expensive to equip every retail pump with a temperature compensating device.

Since Costco's settlement, other companies have also reached settlement agreements, including BP Products North America Inc., ConocoPhillips Co., Shell Oil Products US, Casey's General Stores Inc., Valero Marketing and Supply Co., Sam's Club and Wal-Mart.