Meter Calibration

Minimize unexpected loss.

By Jack Nowicki

How often do you find yourself wishing that you had more opportunities to expand your petroleum equipment business? Petroleum pumps, as we all know, dispense millions of gallons of product annually. Due to the wear and tear of parts, most dispensers actually over-dispense petroleum products.

It's not easy to grow your business in a mature service industry, but due to the unstable and frequently escalating price of fuel, a due diligence maintenance program can lead to major savings for most station owners—your customers—and therefore a new way to increase revenue for your distribution or service company.

Lost revenue, if meter calibration is off to the positive side, while still remaining within meter tolerance can be significant.

Calibration Inaccuracies
Station owners can suffer substantial losses at the pump even when meter accuracy remains well within the acceptable meter in-use maintenance tolerance as specified in the National Institute of Standards and Technology (NIST) Handbook 44, Specifications and Tolerances for Weighing and Measuring Devices. Meters are traditionally tested using five-gallon test measures made to stringent NIST design and construction specifications. On a five-gallon test, the meter tolerance is plus or minus six cubic inches (there are 231 cubic inches in one gallon or 1,155 cubic inches per five gallons). At merely a couple cubic inches off to the positive side, and well within tolerance, thousands or tens of thousands of dollars in revenue could be lost at a high-volume station.

Regional Weights & Measures departments are responsible for the regulation of accurate dispensing of gasoline and diesel meters. Currently, most Weights & Measures departments are overworked and underfunded. Although most try to check petroleum dispensers annually, many have been forced to spot check meters, check out consumer complaints or extend inspections to as long as five years.

The first thought of most service station owners is: “I'm legal. The last time the Weights & Measures inspector came, he gave me a sticker or seal that stated I was within tolerance.” Yes, it's definitely legal, but is it costing the station owner money? Remember, maintenance tolerance is plus or minus six cubic inches (four teaspoons per gallon) for a five-gallon test measure. That's a tiny amount — or is it? While the station owner is definitely “legal,” is he giving away his petroleum product? If so, can you help him minimize his unexpected loss and teach him to be proactive in saving revenue? Just a glance at the potential for lost revenue is likely to wake up the most complacent station owner (See Figure 1).

To put things in perspective, say the price of gasoline is $2.50 per gallon and a service station sells five million gallons in a year (low for some superstations). If the pumps over-dispense two cubic inches per five-gallon test measure (1.3 teaspoons per gallon), the owner will lose $21,645 in a year. If the over-dispensing is three cubic inches per five-gallon test measure (two teaspoons per gallon), the owner will lose $32,467 in a year.

A portable calibration cart helps to make meter checking easier.

Profit Opportunities
So how does this grow your distributor business and save a station owner from giving away petroleum? There is a trend for fiscally responsible petroleum companies to tighten profits in a competitive marketplace, and they do this by conducting meter calibrations on a regularly scheduled basis (using your service company) or they do periodic checks on their own equipment (purchasing equipment from your sales department). Some do both to minimize their losses.

As a petroleum equipment professional, it is your responsibility to educate the retailer as to the reasons for possible inventory loss: theft, over-dispensing or leakage. Next, an environmental program based on due diligence can be put into effect, which requires service stations to periodically check their own dispensers. Remember, you do not have to be a certified technician to check dispensers; however, a trained professional is needed to make adjustments to the meters.

Typically, a five-gallon test measure is all that is required, although a carrying case is recommended. A funnel should be spark resistant with a copper spout.

Calibration equipment can help service station owners keep tighter control of their inventory, and it is creating profit opportunities for petroleum service companies. Educating station owners to make a modest investment may help you to stop pondering and start growing with an expanded arsenal of products and services that can increase your revenue, satisfy your customers and surprise your competitors.

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The PEI Journal • First Quarter 2009 • Volume 3, No. 1 • Contents are Copyright © Data Key Communications, Inc.
All rights reserved. • Nothing may be reproduced in whole or part without written permission of the publisher.