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Auto Insurance
An out-of-service gas pump at a station in Lakewood, Colorado, Aug. 23, 2005. Glenn Asakawa/The Denver Post via Getty Images

Hundreds of drivers may face costly auto repairs after pumping contaminated gas in Colorado. How it happened and what stakeholders may want to avoid

Hundreds of drivers, possibly more, in Colorado are facing the prospect of pricey automotive repairs after purchasing gasoline that was contaminated with diesel from among dozens of locations around the Denver metro area.

About 1,000 drivers filed complaints saying they purchased the bad fuel as of Jan. 30, according to CBS News Colorado, citing state records (1). The Division of Oil and Public Safety reported at least 46 gas stations were impacted (2).

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Colorado’s Department of Labor and Employment said that HF Sinclair, the company that distributed the contaminated fuel, would reimburse those whose vehicles were damaged by the fuel, per the broadcaster. It’s believed the bad gas in question was pumped between Jan. 7 and Jan. 8.

The contamination occurred because a shipment of diesel fuel was sold as regular unleaded gas, CBS News Colorado reports (3). Diesel can cause damage to vehicles designed to run only on regular gas. Mechanics told the broadcaster some repairs might come at a steep cost, starting at $1,000, though one driver says his repair bill came in at $3,200 — and that doesn’t include additional peripheral costs.

Costs go beyond auto repairs

Although drivers in need of repairs may ultimately be reimbursed for damage costs, some face paying upfront if they need to get back on the road quickly. Having to pay thousands of dollars can be a major financial hurdle, and even those who can afford it might have to spend additional time and money on alternative forms of transportation.

Lance Strait says he bought fuel at one of the affected gas stations. He drove to work without any issues.

“But on the way home, it was sputtering and misfiring and obviously had some serious mechanical issues,” he told CBS News Colorado.

He went without his car for two weeks while it was in the shop. One week, he borrowed someone else’s car. The second week, he rented one. Strait says the auto repairs were $3,200, but including tow service and the cost of the rental, he paid about $4,000 out of pocket.

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Jennifer Coggin says she unknowingly filled her car with contaminated gas on her way to work, and later that day it wouldn’t start and was stuck in her workplace parking lot. She told Fox 31 Denver she filed a claim with the gas station seeking towing and repair costs, but was told she would not be paid upfront (4). That’s when she called her insurance provider, which was willing to cover the repairs after she paid a $500 deductible — but the agent said the claim would likely mean an increase in her insurance premiums.

Coggin then received an offer from a third-party claims administrator handling reimbursements for the gas station, Fox 31 Denver reports, for $550 — the cost of her deductible and a tank of gas. But she was required to sign a waiver relinquishing her rights to any future claims.

“I take that money and that’s a risk that my car might never be the same or might have issues further down the line that are more expensive,” Coggin said. “I’m not sure if it’s worth it just for a $500 reimbursement.”

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What can consumers do?

State officials informed the public Jan. 14 the contaminated fuel has been recovered, and affected drivers should fill out a claim at the location they purchased the bad gas from.

“If you think you bought fuel at facilities that are on the published list during that time period or since, and the gas station is not cooperating, get in touch with us,” Zach Hope of the Division of Oil and Public Safety said at a press conference. “We can certainly help encourage them to honor the claim, especially now that we have a list, and we all can point to it and say, ‘Sinclair believes you got bad fuel.’”

He said it was a personal decision if drivers wanted to involve their insurance companies, but recommended starting the claims process with the gas station (5).

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Some drivers have decided to take matters into their own hands. Frank Azar, a personal injury lawyers, told CBS News Colorado he’s working on a class-action lawsuit after “hundreds” of people reached out to his firm.

“I’ve never seen anything like this,” after 40 years in business, he said. “Not on this scale.”

He emphasized that anybody in this situation being asked to sign a waiver for reimbursement should refuse to do so, or risk appropriate compensation down the line.

“Please, please don’t sign these releases,” Azar said. “You may be waiving your rights if you have to go in and redo your fuel injection system.”

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

CBS News Colorado (1, 2, 3); Fox 31 Denver (4, 5)

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Rebecca Payne Contributor

Rebecca Payne has more than a decade of experience editing and producing both local and national daily newspapers. She's worked on the Toronto Star, the Globe and Mail, Metro, Canada's National Observer, the Virginian-Pilot and Daily Press.

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