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The simple answer is yes. I know because I've used them in the past. However, I can't for the life of me find any examples at this point in time. I'll keep looking.

Consider how temperature affects the purchase of gas for your car...

Refer to the expansion coefficients for the particular API Gravity @ 60 degrees F. These are referenced by ASTM Charts.

Example:

Ethanol @ at a gravity of 50.5 and say 70 degrees F would use a coefficient of .9940, what that is saying in simplified terms is if you but 100 gallons exactly and it is 70 degrees F, if you are buying net gallons or temperature compensated, you would pay for .9940 x 100 or 99.40 gallons.

This is how oil companies sell to each other.

Unfortunately, if you buy 100 gallons exactly from a pump at a station and it's 70 degrees F, you pay for 100 gallons. Doesn't hardly seem fair huh?

So let's do some math. Let's say I'm a fuel seller. I buy 10,000 gallons of fuel wholesale, temperature compensated or net gallons at 70 degrees F. So I pay for 9940 gallons. Remember 10,000 x .9940 = 9940, now I put it in my storage tank and lets say it's in Arizona and the ground temperature remains at 70 degrees F.

I just made 60 gallon profit on my sale. Since I sell it in gross gallons or uncompensated. Not a bad gig huh?

60 gallons x $4.00 / gallon = $240.00 profit clear.

So now you understand temperature compensation I hope? Smile for the camera next time you fill up. Especially if it's 90 degrees out.

EDIT: This would be true if the "Ground" temperature was EVER 70 Degrees. It is not.

When underground storage tanks for gas stations were first introduced, they were buried only several feet underground, where the temperature did indeed vary (but note, even 3 feet below ground would almost never see 70 degrees, only if it was about 100+ outside). Today, gas storage tanks are stored at 20+ feet below ground, where the temperature is a steady 55 degrees + or - 2 degrees, REGARDLESS of surface air temperature.

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15y ago

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