California Legislation to Combat “Hot Fuels” and Unfair Gasoline Prices

[courtesy of California Progress Report]

In this week’s Democratic weekly radio address, Assemblymembers Mike Davis (D-Los Angeles) and Anna Caballero (D-Salinas) discuss legislation that would investigate “hot fuels,” a phenomenon where fuel is sold under the assumption that it is a lower temperature than it really is, distorting the price in the process.

You can listen in English or in Spanish.

Hello, this is Assemblyman Mike Davis.

Oil companies have enjoyed unprecedented prosperity in recent years.

But skyrocketing gas prices hit lower and middle income families in Californians hard.

If you ask an oil executive how gas prices are calculated, the answer will be vague at best.

Democrats in the California Assembly are deeply troubled by this unaccountable system.

That’s why we’ve introduced a package of bills to stop Big Oil from squeezing consumers for record prices.

My bill addresses a phenomenon known as ‘hot fuel,’ where fuel is sold under the assumption that it is at a lower temperature than it really is.

But because liquids expand under heat – potentially at the gas pump – the fuel’s prices may be inflated for both local gas stations and consumers.

So we’re going to study the matter, and if your hard-earned money is actually going up in hot air, we’ll put a stop to it.

The package also includes legislation that would require refineries to remain operational so oil companies can’t manipulate prices by playing games with refinery shutdowns.

And we require the California Energy Commission to analyze and report on oil supply, demand, and prices.