Premium fuel sales plummet as prices approach $4.50/gal

Posted Thu Jun 19 2008 4:06 PM by Nelson Ireson

Naturally aspirated sports cars and turbocharged cars of all types are the primary sources of real, requisite demand for premium fuel.

Most cars, even luxury and upscale passenger cars, get along just as well on regular gasoline as on premium.

But now, even owners of cars that require the high-octane fuel are refusing to fill up with premium as prices approach $4.50 per gallon - more than 40 cents per gallon more than regular unleaded.

Demand for the 91-octane or higher fuel has fallen from 16% of the total U.S. fuel supply at its all-time high in 1997 to about half that, or 8%, in May.

The actual volume of premium fuel sold has fallen to its lowest level in 24 years, reports the Detroit Free Press.

“We’re down to the core, die-hard audience that believes they need 93 [octane],” said the publisher of the Oil Price Information Service, Tom Kloza.

The drop in demand comes despite an increase in new cars that carry a manufacturer recommendation or requirement for high octane fuel. In high-compression environments, like high-performance naturally aspirated or turbocharged engines, the higher octane helps prevent detonation, commonly called 'knock', which can cause extreme piston wear and engine failure.

Higher octane fuel does not enable lower-compression ratio engines to produce more horsepower, and can actually result in more unburnt fuel in some situations, reducing both power and fuel efficiency. Nevertheless, some motorists have persisted in using premium fuel believing there was some advantage to be gained. The massive drop in demand indicates many of those buyers are now returning to normal 87 octane fuel.

Reader Comments

Thu Jun 19 2008 5:18 PM
Gus says

I've always laughed at people who put premium in cars that don't need it.

But I also laugh at people who's engines desperately need premium who figure that the money saved will pay for that new twin turbo engine a few years from now.

My 300hp/320tq Mustang GT eats regular, gets 24mpg at 75mph, and I'm proud of that, thanks.

But you have to laugh at the dummy with the F150 putting premium in "cause she likes it better". Oy...
Thu Jun 19 2008 5:33 PM
zamafir says

I wish I was paying only 4.5/gal for premium... actually, I wish we could purchase more then 91 here in california.
Thu Jun 19 2008 8:41 PM
Jason says

$4.50 a Gal is CHEAP,
Here in Australia Premium costs us around $1.85 a litre ( roughly $7.00 a Gal)
Sure, that's for 98 RON Octane, but even our standard stuff is about $1.65cpl ( $6.25 a gal)
Fri Jun 20 2008 6:33 AM
burke says

Jason: Please, correct me if I am wrong. You guys in Australia tax on gas to provide for social programs like education and healthcare, right?
Fri Jun 20 2008 8:28 AM
Steve burns says

If the manufacturer recommends premiium, there is a reason. My wifes acura: on regular and mid grade runs 18 mpg. On premium: 22 mpg, a 20% difference which outweighs extra fuel cost.
Same affect with my Audi...loses 4 mpg on midgrade. There is also a performance difference.
Penny wise-pound foolish.
Fri Jun 20 2008 5:49 PM
Gjore says

Here in Macedonia the regular Unleaded is 95 octane and it costs around 1.9$ a litre and the Premium is 98 octane and cost 2$ per litre (about 8$ a gallon). I don't know why there is so much difference in the octane number for the Europe and the USA gasoline.

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