Petroleum Marketers Respond to Costco's Attempt To Settle Fair Fuel Suit

ARLINGTON, Va.

“It is very troubling to me, but it is mostly a PR stunt, at the expense of 160,000 other gasoline retailers,” said Dan Gilligan, president of Petroleum Marketers Association of America, based here. “Installing ATC on retail pumps is not legal in any state, except California, and that is a toss up.” [California has not forbidden the use of the pumps, but has no structure in place to inspect them.]

ATC pumps should not be permitted, Gilligan told CSNews Online. “It is an easy way to cheat people if you use ATC in an unregulated fashion. Retailers could turn ATC on cold days and turn it off on warm days. Also, the ATC may be calibrated incorrectly. Without inspectors, this would all be on the honor system.

“But it saves Costco the costs of defending themselves in this class-action litigation,” Gilligan added, noting there are 120 other retailers and groups being sued. “And Costco gets the public relations bump, proclaiming they are going to install ATC, insinuating it is good for consumers. But ATC at retail is not legal, and won’t be for many, many years going forward, if it ever is.

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