July 1, 2017

Meter Season Has Arrived!

Summer is in full swing and Americans are racking up driving miles. During this season PMP Corporation typically sees a spike in sales of meters, valves, electronic printers and other key components used in gas stations. The reasons for the increase include: higher usage of dispensers, the associated wear of components and increased traffic at gas stations.

What many station owners may not realize is that they may be giving away gas for free! This is due to meter wear which results in dispensers registering less fuel volume than what was actually delivered. Inaccurate meters cause thousands of dollars in lost profits each year, even when they are within the nationally accepted tolerance.

Okay, so here comes the math. Most states’ Weights and Measures regulations allow for a tolerance of up to 6 cubic inches per 5 gallons pumped. However, if a gas station has a meter over-delivering by just one cubic inch per five gallons, that station gives away almost one gallon (0.87) per one thousand gallons pumped. A reasonably busy station will pump 100,000 gallons per month, giving away more than 86 gallons every month! At the current low national average price of approximately $2.25/gallon, that means a gas station would give away $2,337.66 over the course of a year. Now imagine a station whose dispensers have an average error of 2 or 3 cubic inches per every 5 gallons pumped; it can mean more than $7,000 in lost profits for the year!

The moral of this story is that station owners should not wait for a Weights & Measures Sealer to check the accuracy of their meters. Station owners who contract with calibration services on a regularly scheduled basis are likely to see significant savings in profitability.