Wednesday, June 29, 2011

Are the Pumps at Your Local Gas Station Accurate?

It's bad enough that gas prices have soared in the last 2 years, but a recent story by CBC News shows that the governments own data proves that gas pumps have incorrectly charged consumers nearly 20 million dollars a year, 12 million of which was - hold your breath - overcharged!

The CBC Story follows below.

Canadians already paying steep gas prices can add one more cost to their bill: forking over money for fuel they didn't receive.

Government data obtained by CBC News shows that six per cent of all gas pumps tested over the past 2½ years failed to dispense the right amount of fuel. In about two-thirds of the faulty tests, customers bore the brunt of the error.

The loss adds up to an average of a couple of dollars for every 50 tankfuls, the Automobile Protection Association estimates, but the total loss across Canada is in the millions.

"If you can pick up pennies here and there, it adds up to real money and that's really our concern," says George Iny, director of public interest group Automobile Protection Association.
 
Gas retailers overcharged consumers by nearly $20 million a year, and undercharged them by $12 million, according to Measurement Canada, based on 2008 figures.

Rates varied by province


The number of faulty pumps found in the Jan. 1, 2009, to May 1, 2011, tests varied by province:

  • Saskatchewan rated the highest for overcharging customers when a pump was faulty, at 83 per cent.
  • Tests in Ontario revealed seven per cent of gas pumps made mistakes, with 67 per cent of the faulty readings favouring the retailer.
  • Four per cent of Alberta's tested pumps were faulty, favouring retailers 73 per cent of the time.
  • Nova Scotia — where seven per cent of pumps dispensed the wrong amount — was the only province where faulty pumps actually favoured the consumer, at 54 per cent.

An inaccurate pump in the tests equals a discrepancy of more than 100 mL over or under for 20 litres of gasoline.

The problem of inaccurate gas pumps first surfaced in 2008 when media reports revealed that nearly five per cent of pumps tested between Jan. 1, 1999, and Aug. 28, 2007, shortchanged consumers, or one inaccurate pump every 20 times.

The industry minister at the time, Jim Prentice, vowed to crack down on inaccurate pumps. He promised stiffer penalties and directed Measurement Canada, an agency that checks whether yields match the ticket price, to increase the frequency of pump inspections. The new rules are still not in effect.

Industry Minister Christian Paradis was not available for comment.
Since 2008, the number of inaccurate pumps shortchanging consumers dropped by one percentage point to four per cent. On average, motorists are now shortchanged once every 25 pumps, according to the latest government statistics. Once every 50 fill-ups, they receive more than what they paid for.
 way."

The agency is part of a class-action lawsuit against five gas retailers, accusing them of shortchanging consumers. The lawsuit is seeking certification.

"It also shows a culture in the oil industry," says Iny. "Even with the results becoming public, even with a lawsuit, no oil company has offered, as far we know, to refund customers who paid too much.

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