Costco Settles Lawsuit Over "Hot Gas"

Costco has tentatively reached a settlement with a consumer watchdog group in a lawsuit over so-called “fair fuel.” Consumer Watchdog filed the lawsuit alleging that Costco was selling gasoline, the temperature of which exceeded sixty degrees.

According to the lawsuit, for every 15 degree increase in temperature, 1 percent of the fuel sold to the consumer is lost due to expansion. In other words, because of the elevated temperature, consumers were paying for gas they were not driving away from the pump with.

Costco is the first gasoline retailer to settle a lawsuit of this sort, although there are a number of other companies named.

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