November 28, 2005

IT WON'T BE MISSED:

Octane's Allure Hurt by High Cost: This year many drivers stopped using premium fuel. The switch will be permanent for some. (Elizabeth Douglass, November 28, 2005, LA Times)

Automakers and fuel experts don't dispute the properties of premium, but they point out that most vehicles come with sensors that allow the engine to adjust to different grades of gasoline without a noticeable loss of power or performance.

David E. Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich., said some car manufacturers, especially makers of luxury and sports cars, list premium fuel as a requirement in the owner's manual. In such cases, he said, it's usually a good idea to stick with the top-grade fuel.

However, the majority of today's vehicles are designed to run on regular, and even those models where the manufacturer recommends higher octane fuel generally run just fine without it, Cole said. Deviating from the gas dictated or recommended by the auto maker can sometimes cause a drop in fuel economy, but it's unclear whether the loss is enough to offset the higher cost of premium fuel, he added.

"In most cases, I view buying premium fuel as throwing money away," Cole said. "I buy regular fuel. I think it's the best deal, and it's not going to hurt your car."

None of that is good news for oil companies that have made a point of pushing their premium blends in an effort to boost profits as well as brand loyalty.


Refiners always complain about all the blends they have to produce--how about not making Premium?

Posted by Orrin Judd at November 28, 2005 8:23 AM
Comments

How about not making 20-30 different blends for environmental reasons?

93 octane was $2.12 at an Indy Costco last Saturday. Woo Hoo!

Posted by: Rick T. at November 28, 2005 10:18 AM

They make premium because it costs a couple of cents more than regular, but they can charge another $0.25/gal.

The manufacturers like it because they can use more agressive engine settings and claim a couple more hp.

Posted by: Robert Schwartz at November 28, 2005 11:23 AM

C'mon - it's what NASCAR nation wants.

Posted by: ratbert at November 28, 2005 11:28 AM

My 1980 vintage 911 won't run on anything else.

Posted by: Jeff Guinn at November 28, 2005 12:34 PM

Careful OJ. They may not make regular ... just not profitable enough.

Posted by: Genecis at November 28, 2005 12:41 PM

I run 94 in my sports car and in my old, large-engine SUV. Railroads are for hauling tank cars to the refineries.

Posted by: Lou Gots at November 28, 2005 4:16 PM

I'm missing the reason that we should all pay the price for your boutique cars.

Posted by: oj at November 28, 2005 4:20 PM

You're not paying the price, they are.

Posted by: joe shropshire at November 28, 2005 6:02 PM

No, we all are because refineries waste capacity on it.

Posted by: oj at November 28, 2005 6:06 PM

So build more capacity.

Posted by: joe shropshire at November 28, 2005 6:16 PM

Sometimes you have to use your enemies' means to achieve your own ends.

Posted by: oj at November 28, 2005 6:42 PM

Sometimes you get what you ask for, and you don't like it much.

Posted by: joe shropshire at November 28, 2005 6:53 PM

Yes, but if you ask for what you don't want and get it you're certain not to like it.

Posted by: oj at November 28, 2005 6:58 PM

For every car I've driven over the last 20 years, the higher cost for a tank of premium is more than made up in increased gas mileage, plus higher octane gives better pickup (usually, it depends on the electronics in the fuel management, and can vary among different vehicles).

I've also never once had a problem with clogged fuel injectors, or "bad gas".

According to my scorecard, that's win/win/win/win.

Refining capacity problems can be traced to the different blends required by the EPA. Other relics of their genius include a mandate to use MTBE which then leaches into our groundwater.

Posted by: Jeff Brokaw at November 29, 2005 3:00 PM

My "boutique" car is a daily driver that gets nearly 30 mpg.

Posted by: Jeff Guinn at November 29, 2005 4:51 PM

And the refiners actually complain about regional and seasonal blends, not year-round nationally sold blends.

Posted by: David Cohen at November 29, 2005 6:19 PM

David:

So what?

Jeff:

And misshapes the entire refinery process.

Posted by: oj at November 29, 2005 7:10 PM

Jeff Brokaw:

Studies refute that notion.

Posted by: oj at November 29, 2005 7:21 PM

OJ:

No, it doesn't.

In fact, it is quite likely that refineries get a higher profit margin on premium than regular, and are thereby able to sell regular at a lower price than otherwise.

Posted by: Jeff Guinn at November 30, 2005 7:19 AM

Jeff:

No, they gouge us on regular too, but we need more and processing premium limits the supply of regular.

Posted by: oj at November 30, 2005 7:28 AM

HUH? How does processing premium limit the supply of regular?

There is as much regular as driver's demand.

What's more important, there is as much gasoline as driver's demand.

Oh, and you really ought to quantify "gouge."

Posted by: Jeff Guinn at November 30, 2005 11:53 AM

Jeff:

No, there isn't--that's the problem. We have bottlenecks at refineries because they're producing other grades and blends.

Posted by: oj at November 30, 2005 12:03 PM

Blends are the problem, not grades.

Posted by: Jeff Guinn at November 30, 2005 4:19 PM

Both

Posted by: oj at November 30, 2005 4:33 PM
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