Auto Makers and Gas Companies Profit When You Buy Premium Gas!

Gas companies and auto makers love it when you buy premium gas. They like it so much that they try to perpetuate myths about premium gas. Myths like premium gas will lead to better fuel economy. Myths like premium gas will make your car perform better. Why do the gas companies and auto makers like premium so much?

Gasoline retailers and refiners love premium gasoline because it is so much more profitable than regular gasoline. You end up paying about 20 cents more per gallon for premium gas and the retailer only ends up paying about 8 cents more. The retailer makes 12 cents more on every gallon of high octane gas he sells.

The oil refineries make a few cents per gallon more on premium gasoline over what they make on regular when selling it to distributors. The small extra profit per gallon is multiplied by the tens of thousand of gallons of gas that refineries sell, and ends up adding thousands and thousands of dollars to their profit.

The gas refineries and retailers are not the only ones that make more money from premium gas. Auto makers use premium gas to add to their profits too. One way they do that is by creating a higher perceived value for their cars.

If a car has to have premium gas it must have a more expensive engine therefore the car must cost more. Using that logic the car companies can get higher prices on some models by recommending only premium gas can be used in those models. This adds credibility to their contention that the car is worth more money.

Another way that car manufacturers capitalize on premium gas is by using to their advantage the anti-knock properties of premium gasoline. They do this by designing engines to be specially tuned for premium gas. By doing that they can create "premium engines" that actually do get a little more horsepower out of premium gasoline then they do from regular gasoline.

Since there is some horsepower gain it allows the car makers to advertise higher horsepower ratings for their engines. Again, higher horsepower ratings means more expensive car which means more profit for the auto makers.

These optimized for premium engines actually do put out a little more horsepower on premium than with regular. But most car experts and engineers seem to agree that if you use regular in a premium engine, the difference in horsepower is so small, you probably can't tell.

Regular gasoline can be used in a "premium engine" without any noticeable difference. Premium gasoline does not enhance fuel economy. In the end it all comes down to this: By making you believe you need to use premium gasoline, the oil companies and auto makers are able to put more money in their pockets by taking more out of yours.

By: Scott Siegel

Scott Siegel is the author of a 143 page manual of automotive industry insider secrets on saving gas and dollars at the pump. Visit us to learn how you can get better gas mileage. Find out how to increase gas mileage.
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