Cheatings with the Gasoline Dispenser

The high cost of filling a gas tank is upsetting many consumers. But the possibility of being cheated at the pump should upset them more. PE&T’s Joe Totten examines the ways you could be cheated at the pump and explains how to detect and report suspected fraud.

Weights and Measures inspectors testing gasoline pumps in Baltimore, MD, c. 1925. Courtesy of the Weights and Measures Section, Maryland Department of Agriculture

Some weeks ago, I heard people complaining about the high price of gasoline: premium had climbed to well over $2.00 a gallon and there was no prospect of anything happening to reverse the trend. What can be more upsetting? Well, for one thing, the price just might keep climbing. As Jimmy Durante used to say when his performance was interrupted by hearty applause, “You ain’t seen nothing yet!”

Another thing that would be more upsetting than paying over $2.00 a gallon would be learning that the “premium” for which you paid the higher price was really just “regular.” Or that the price you actually paid was more than the displayed price. Or that you paid for more gallons than you actually put in the tank. These are the end results of some devious (and, of course, illegal) devices and schemes that can be employed by unscrupulous dealers or employees to rip customers off at the pump.

How prevalent are these fraudulent tactics? At this point, I know of no source that could answer this with supporting evidence, although some sources say some of the tactics are widespread. I would quickly add that, like most criminal activities, these kinds of scams likely are perpetrated by only a very small percentage of the individuals who are in a position to do so. I would also add, just as quickly, that the mere thought of consumers being ripped off, even at only a few stations, should inspire increased awareness and attention by gasoline users, dealers, marketers and regulatory agencies.

This is the purpose of this article: to bring more attention to the kinds of fraud that can be perpetrated at the gas pump, how it can be detected and what should be done when it is found or suspected.

20/20 vision
On May 10, 2000, ABCNEWS’ 20/20 aired a report on Brian Ross’ investigation of cheating at the gas pump. That report described some actual and potential frauds at the pump and the actions (or inaction) by state and local regulators to deal with them. The 20/20 story prompted me to contact national and state officials involved in regulating the accuracy of gasoline dispensing equipment to find out more about the subject of cheating at the pump and what is being done to combat it. Based on the 20/20 report and information obtained from the officials with whom I spoke, following are some of the schemes that have been foisted upon gasoline customers.

“Credit” prices for cash customers
Some stations apparently still charge credit-card customers more per gallon than cash customers, although I must say that I haven’t seen this for quite a while in my area. A potential fraud at such stations: cash-paying customers may be charged the higher credit-card price. The 20/20 report cited one instance in which two attendants used quick hand moves to push the “credit” button on the dispenser just as cash-paying customers started to pump their gasoline. Obviously, they pocketed the extra cash (about 7 cents a gallon).

The best way to prevent or detect this form of chicanery is simply for the cash customer to pay close attention to ensure that the price being used is the posted cash price. The price per gallon must be shown on the display, along with the gallons pumped. And beware of anyone near the dispenser you are using. As additional assurance, insist on getting a written receipt showing the number of gallons, the price per gallon and the total. Check it out, preferably before leaving the premises, but later if necessary.

The service station manager can help by being aware of the potential for this type of activity and attentive to what employees are doing, both at the dispenser and inside the store. Matching total cash sales with cash receipts and total credit sales with credit-card tickets may point out discrepancies resulting from this tactic.

Octane cheating
The result of “octane fraud” is that the customer pays for a higher grade of gasoline than actually gets put into the vehicle’s tank. The difference (around 20 cents a gallon) between “what was paid for and what was pumped” represents extra profit to the perpetrator. And, of course, the lower octane may cause poor engine performance.

According to the 20/20 story, authorities have not quite figured out how this is being pulled off. One obvious possibility, to me at least, is that the dealer could have a load of lower grade gasoline delivered to the higher grade storage tank. There may be other, more sophisticated schemes, including tampering with the dispenser mechanics or electronics.

Regardless of the specific scheme employed, the only sure way to tell whether the higher octane gasoline you just purchased was, in fact, higher octane is to have it tested. However, your engine’s performance after the purchase might provide some clues, such as unusual pinging, knocking, reduced power or reduced gas mileage. Such clues may be grounds for getting an octane test performed on the gasoline or reporting your suspicions to the authorities (more on this later).

Weights and Measures inspectors testing compartments in tank wagons (oil delivery trucks) in Baltimore, MD, c. 1925. Courtesy of the Weights and Measures Section, Maryland Department of Agriculture

Dispenser tampering
Gasoline dispensers have sophisticated devices that measure gasoline as it is being dispensed and compute the total sale amount based on a set price per gallon. Such measurements can be inaccurate, either with or without malice aforethought. Unless they are regularly calibrated and adjusted, the meters can become inaccurate over time, thus overstating or understating the volume and price of dispensing transactions. Also, any device is subject to fraudulent tampering or rigging.

As I will discuss later, the calibration and accuracy of dispenser metering devices are subject to regular, periodic inspections by state or local weights and measures officials to ensure their continued accuracy.

But don’t rely on such inspections to protect you from a malfunctioning device or one that has been rigged. First, even the best inspection program cannot reasonably be expected to catch each and every inaccurate device the day it becomes inaccurate, whatever the reason. Second, not all of the state and local weights and measures offices appear to be equipped or staffed to deal with some of the more sophisticated ways of fraudulently rigging this high-tech equipment.

Dispenser rigging can include manual manipulation to throw off the measuring or calculating devices so that the customer either pays more per gallon or gets less volume than shown on the dispenser display. Another ploy is to rig the dispenser so that it does not reset to zero after a fueling episode, in which case the next customer gets ripped off for whatever amount was already on the register.

Weights and Measures inspector testing gasoline pumps in Frederick, MD, c. 1975. Courtesy of the Weights and Measures Section, Maryland Department of Agriculture

In an even more disturbing dispenser rigging scheme, referred to as “computer chip cheating” in the 20/20 story, corrupt station owners are using a computerized device to rig dispensers so that they dispense less gasoline than the customer pays for. (A state weights and measures official told me that the controls for some such devices resemble a garage-door opener).

According to the 20/20 report, law enforcement authorities in California say that (1) thousands of customers in their state have been cheated by this scheme, which may have spread from the midwest; (2) the cheaters have figured out how to ensure that purchases of five or 10 gallons are accurate, because these are the quantities that official inspectors test for; and (3) anyone with a rudimentary knowledge of computer programming and a concept of how they want to cheat can design a cheating system.

Modern-day equipment used by Weights and Measures inspectors, Illinois Department of Agriculture. Attached to this trailer are different devices for checking a dispenser’s volume accuracy. Large device on front of trailer is for testing bulk volume. PE&T photo.

You need to pay attention
How can dispenser rigging be detected? As with the other schemes discussed above, customers need to pay close attention to what’s happening at the pump. The cheaters obviously are taking advantage of the simple fact that most people don’t pay enough attention to the price and volume of their gasoline transactions. The sidebar on “How Gasoline Dispensers Work” and the following tips should help you pay closer attention:

• First off, have a good idea how much gasoline it will     take to fill your tank. You should know the total     capacity of you vehicle’s fuel tank and about how     much it takes to fill it when your fuel gauge is at a     certain level. Significant differences between what     you think it will take and what the pump shows may     mean that the dispenser has been rigged. (Note:     Your tank’s capacity may not be exactly what your     owner’s manual specifies; also, the tank may take     more fuel than normal if your vehicle is sitting on an     angle.)
  • Check the prices posted on station signs for the     grade of gasoline, the type of service and method of     payment you select. Make sure the posted price for     your selection is the same as the price per gallon     displayed on the dispenser face.
  • Following the display verification cycle, make certain     that the dispenser resets to all zeros before you     start pumping gas. The display windows for “SALE”     and “GALLONS” should clearly show all zeros. They     should not advance until the gasoline starts to flow.
  • While dispensing, observe the dispenser display to     see that the price per gallon does not change during     the process, or that the numbers indicating “SALE”     or “GALLONS” do not skip, black out or advance so     fast that you can’t read them. Any of these may be     symptoms of a rigged dispenser. (Note: It is normal     for the the last digit in the “GALLONS” display to     advance so rapidly that you cannot read each digit,     or for the microprocessor to update at a slower rate     and then appear to skip some digits.)
  • As you stop pumping (or when the pump kicks off)     be looking closely at the dispenser display to see     that the register stops at the same time the pump     stops. If the numbers continue to advance after the     gasoline stops flowing, the dispenser may be rigged.
  • Whether paying cash or using a credit card, always     insist on getting a receipt, even if the dispenser     display directs you to “see attendant” for a receipt.     Pay attention: compare the written receipt with the     dispenser display and check the math.

When you observe something that seems out of line during your gasoline purchase, what should you do? As discussed in the next section, this question requires careful thought.

Rear view of the trailer shown in prior photo. Each measuring device is used to check a specific grade of gasoline for a dispenser’s volume accuracy. PE&T photo.

Foiling the frauders
Okay, so you’ve exercised all due diligence and, lo and behold, you’re pretty sure that something is awry with the measurement and pricing of your last fill-up. Or perhaps the way your engine is acting tells you that the tank of premium gasoline you just bought can’t really be premium. What do you do?

Your first inkling may be to confront whomever is working at the station. While doing so might get you an adjustment on that one transaction, it would do little toward making a case that someone is engaging in fraudulent sales. Proving fraud is very difficult and requires a deliberate approach, which usually does not start with complaining to someone who may be involved in the scheme. In fact, successful pursuit of fraud purveyors often requires undercover work by trained investigators. What you need to do is report your suspicions, with whatever supporting evidence and details you have, to the proper authorities.

The proper authorities include your state attorney general’s office, which may have a consumer protection division. Another authority is your state or local weights and measures office. Weights and measures is a topic of regular editorial coverage in PE&T, mainly through the writings of F. Michael Belue, President of Belue Associates, a consulting firm in Murfreesboro, TN. Accordingly, we are in a position to provide the following additional information about the national network that is in place to oversee manufacture and use of devices used for weighing and measuring consumer products, including gasoline dispensers at service stations.

How Gasoline Dispensers Work
The workings of a gasoline dispenser are straight-forward. Although not all of them are exactly the same, dispensers typically work as follows.

The fueling sequence starts with what has just happened at the end of the previous fueling. When a customer hangs the nozzle back onto the dispenser, a solonoid valve in the fuel stream is closed to prevent additional fueling until the next customer follows the specified steps. The next customer usually is instructed to establish his method of payment, which might be with a card or cash acceptor on the dispenser or with the cashier via the control console inside the facility. This step activates the dispenser. The customer then selects the product (grade of fuel), removes the nozzle from the dispenser and inserts the nozzle into the vehicle’s fill pipe.

When the product is selected, a submersible turbine pump is turned on electically. The flow might pause slightly to make a piping tightness test and then it pumps fuel into a piping network that connects the turbine pump with each dispenser that dispenses that grade of fuel. The electric solonoid valve for the “authorizing” dispenser (the same one that closed after the previous customer) opens electrically and allows fuel to flow to the dispenser’s meter.

Pressure of the fuel being pumped forces the meter—a series of pistons around a crankshaft—to reciprocate. That is, the pistons move back and forth and turn the crankshaft, which is connected to the dispenser’s register through a calibration device. The calibration device establishes the relationship of the volume of liquid passing through the meter with the number of gallons displayed on the register. The register is programmed to relate the price per gallon to the volume dispensed to arrive at the total price, which is also displayed.

The fueling sequence ends when the nozzle is returned to the dispenser. This ends the transaction. The power to the submerged turbine pump is cut off if all of the other dispensers on the same product are turned off. The solonoid valve in the dispenser piping closes, and the dispenser interlock is set until the next customer comes along.

The meter’s calibration is adjusted as it wears. In foreign countries, meters are required, by law, to measure more volume as they wear. In the US, there is no law. However, the local weights and measures authority may red tag a station if they find the meters are consistantly short changing a customer. So most calibration adjustments are to increase the gallons displayed to compensate. Calibration adjustments should be performed only by trained service technicians in response to test results.

The basic form and function of dispenser meters have not changed for many years, although there has been an evolution in the types of construction materials and seals employed. Newer systems have the potential to be monitored remotely and to be self-calibrating. For additional information, see “Smart Meters by the Pair,” PE&T, Feb. 1999, p. 5.)

NIST and NCWM
The National Institute of Standards and Technology (NIST), which is housed in the US Department of Commerce, helps control gasoline sales fraud by helping federal, state and local governments achieve uniformity in weights and measures standards, laws and practices. NIST publishes these requirements for the National Conference on Weights and Measures (NCWM) in NIST Handbook 130: Uniform Laws and Regulations in the Areas of Legal Metrology and Engine Fuel Quality. NIST also helps train state employees in weights and measures offices around the country to inspect gasoline dispensers using standard measures. Handbook 130 has been adopted by NCWM, a “voluntary-standards” organization that works closely with NIST and state weights and measures offices to ensure uniform weights and measures in the US.

Close-up of gasoline measuring device used by Illinois Weights and Measures officials. PE&T photo.

State and local offices
Neither NIST nor any other federal agency has authority to routinely regulate the accuracy of gasoline dispensers or other weighing and measuring devices. Rather, such authority rests with state, county and city governments. Uniformity among local weights and measures laws is attained via the workings of the NIST-supported NCWM. About 2,500 state, county or city weights and measures officials are members of NCWM.

Forty-nine states, the District of Columbia, Puerto Rico and the Virgin Islands have laws governing weights and measures, 85 percent of which are patterned after NCWM standards (i.e., some edition of NIST Handbook 130). The Handbook covers the area of gasoline measurement and quality. It is used as a model for state, county and city weights and measures inspection of devices when they are first installed and periodically after installation.

Weights and measures offices usually inspect gasoline dispensers at least once a year, and more frequently where there have been consumer complaints. The accuracy of the measuring devices, of course, is a major focus of the inspections. In addition, the weights and measures officials make an overall inspection of the equipment. They check to see that the console or POS readings are the same as the dispenser readings and that printed tickets have the proper information and agree with the dispenser readings. Printed tickets are required to identify the product and show the volume delivered, the unit price and the total price. Many of the weights and measures offices also check the fuel quality and octane rating.

When they find dispensers that violate accuracy tolerances or other requirements, weights and measures officials have such options as (1) tagging the equipment as out of service until it is corrected, (2) issuing citations with proposed fines to the owner and (3) closing the facility. The specific action depends on the severity of the problem and its impact on the public.

If, at the time of the inspection, the delivered quantity and pricing are accurate and the dispenser meets all legal requirements, the weights and measures official places an approval seal (sticker) on the dispenser. The sticker should show the month and year of the last inspection and the weights and measures agency’s telephone number (see above photo).

If you suspect that something is wrong with the price, volume or product grade at your next fill-up, you should call the weights and measures office as soon as possible. According to an NCWM information brochure, your questions and complaints will be given high priority. See sidebar on “Weights and Measures Contacts” for a listing of weights and measures directors.

Use your resources
The best defense against those who would defraud consumers at the gasoline pump is for gasoline consumers, dealers, marketers and regulatory agencies to be well-informed, attentive and concerned: informed about how consumers can be cheated at the pump, attentive to what’s happening during the refueling process, and concerned enough to report suspicions to those who have the expertise and authority to investigate the facility. The consumer protection divisions of state attorneys general offices and the dispenser inspection officials in the state, local or city weights and measures offices should have the necessary expertise and authority. These are your resources. Your questions and complaints can help them better carry out their duties.

Special thanks to the following people who contributed information or photographs used in this article:
Linda Joy, Public and Business Affairs Division, NIST; R.D. Eaves, Program Manager, Weights and Measures Section, Maryland Department of Agriculture; and Sidney A. Colbrook, Weights and Measures Bureau Manager, Illinois Department of Agriculture.

Illinois Weights and Measures inspector removes expired permits (stickers) from dispensers. New stickers will be affixed if the dispensers pass inspection and testing. PE&T photo.

Discuss