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

By: Scott Siegel

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?

Gas retailers and oil refiners love high octane fuel because it is so profitable. 20 cents more per gallon is what you pay on average for high octane fuel but the retailer only pays 8 cents more on average. The retailer has 12 cents more profit on every gallon of high octane fuel he sells.

The refineries, when they sell fuel to it's distributors only make a few extra cents per gallon for high octane fuel. Remember though, this extra profit per gallon is multiplied by the thousands and thousands of gallons of fuel that refineries sell. That equates to thousands and thousands of additional profit dollars.

The refineries and fuel retailers aren't the only ones that get an advantage using high octane fuel. Vehicle makers use high octane fuel to increase their bottom line also. The car makers use high octane fuel to increase the perceived value of their vehicles.

They convince you that if a vehicle can only use high octane fuel it must have a premium engine and since it has a premium engine naturally the vehicle must have a higher price. Auto manufacturers can persuade you that their "premium engine" is worth more dollars by stating that it can only run on premium gas.

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 these engines do have some horsepower gain it enables the auto makers to advertise bigger horsepower ratings for their "premium engines". Higher horsepower means more expensive auto which means more cost for you and more profit for the car manufacturers.

The optimized for premium engines do perform with a small increase in horsepower running on premium gas. Most engineers and car experts seem to agree that you can use regular in a premium engine and you probably can't tell the difference.

Since low octane regular fuel can be used in a "high octane engine" without any noticeable change in performance and high octane fuel does not improve fuel economy why do you need to use premium gas? It all comes down to profit! Making you believe you need to use high octane fuel, the oil companies and auto makers put more money in their pockets and as a result you have less money in yours.

Article Source: http://www.articlemap.com

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