High spread between regular and premium grades

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Quattro Pete

Quattro Pete

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DISCLAIMER: This is specifically related to situation in North America. The same may not be true in other parts of the world due to different crude suppliers/sources.

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Those of you that fill up with premium have probably noticed the increased price spread between regular and premium. Back when gas prices were high, the difference used to be around 20-25 cents per gallon. Now it's more like 50 cents, and I have seen stations where premium was $1 per gallon more than regular.

I thought this was some kind of price gouging ("people with expensive cars shouldn't complain about expensive gas" mentality), but this article blames it on shale oil that is not good for making higher octane fuel...

Quote:
It turns out that the type of crude drawn from shale formations is rich in low-octane chemical components and therefore far easier to refine into regular unleaded. Foreign-sourced oil, such as the kind that OPEC producers supply, is easier to turn into high-octane premium.


http://finance.yahoo.com/news/as-gas-pri...-150553933.html

Any truth to this?
 
91 E0 has always been 0.45 higher than 87e10. 87 E0 is 0.22 higher than 87E10.

87E10 1.85
87E0 2.07
91E10 2.17
91E0 2.30
 
i have in the last week seen the spread at 20 cents and 40 cents on E0 91 octane at two same name stations but in 2 different towns about 80 miles apart.

and come to think of it i have seen this before on several occasions.
 
Originally Posted By: volk06
91 E0 has always been 0.45 higher than 87e10. 87 E0 is 0.22 higher than 87E10.

87E10 1.85
87E0 2.07
91E10 2.17
91E0 2.30

Around here, right now regular is $1.89 while premium is $2.37, so that's a 48 cents difference. All grades contain ethanol. We do not have E0 gas here.
 
well the pipe line might make a difference, but there would still be the other variables as talked about in the article, the gasoline supplies on hand and the demand for the product.

interesting to see though how the pipeline would or could affect it.
 
Originally Posted By: Quattro Pete


Any truth to this?


Not really. Not as far as the process goes. The extra cycle or whatever you want to call it to elevate octane costs is minimal. It is essentially all energy cost and that isn't much when you are talking gallons. It is all about demand and supply, not manufacturing costs.
 
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^^ Oh, and Yahoo and AOL are NOT real news. I figured out years ago that they are portals by which news outlets regurgitate stories to back up mainstream trends, - blatantly. For the simple minded. Not saying that towards you, QL. Just towards Yahoo and AOL - both Time Warner comlanies, IIRC.

I had to set my browsers away from them, it got to be too much. I now also do not own a TV. No actual subscription service, anyway.
 
So you are saying that article and the other articles on those sites are false?

Originally Posted By: MalfunctionProne
^^ Oh, and Yahoo and AOL are NOT real news. I figured out years ago that they are portals by which news outlets regurgitate stories to back up mainstream trends, - blatantly. For the simple minded. Not saying that towards you, QL. Just towards Yahoo and AOL - both Time Warner comlanies, IIRC.

I had to set my browsers away from them, it got to be too much. I now also do not own a TV. No actual subscription service, anyway.
 
In Canada, at least in SW Ontario, the Premium for Premium Fuel is $0.15 - 0.175 per litre more than regular.

For each Imperial Gallon this is $0.6825 - $0.796 CAD increase.
For the US Gallon, it would be $0.568 - $0.662 CAD increase over regular.

FWIW, the price of regular last June was about $ 1.45 CAD/litre and now it's $0.845 CAD/litre.

Don't even get me going on the cost of our beer other other vices!
 
Spread is huge here. Just filled up. 87 was $2.04. 89 was $2.59. Didn't notice 93. 90 E0 was $2.79.
 
Premium is $0.22/gal more where I get gas. $0.24 at most places. Premium is 91 octane here except for BP who charges $0.40 more for 93 octane.
 
Originally Posted By: NMBurb02
It is still a 20-25 cent spread here. In fact, there is an Arco near me where the spread is actually 16 cents (8 between 87 and 89 and another 8 between 89 and 91).

Same here. Most stations have a spread of 20 cents, some stations have a spread of 8 cents between grades, 8 cents more for mid grade and another 8 cents for premium.
 
Around here the large majority of gas stations have a spread of 10 cents more per gallon for 89 octane mid-grade and 20 cents more for 91 octane premium. Not all gas stations have this spread, but it's pretty common. However, I have seen as high as 30 cents more for premium.

None of this should make any sense from a cost or marketing point of view. It's just a nice round number that marketers have settled on for the most part.
 
I chalk it up to profit, and nothing else. In OK, we only have 87, 89, 91. But all three grades are widely available in E-10 and E-0. While the cost between E-10 and E-0 does seem to vary (typically 15-25 cents more for E-0 of the same grade), the difference between grades of the same type of fuel always remain the same at each individual station. But different companies charge different amounts (Valero always charges 10 cents for each step. Ex: 1.69 for 87, 1.79 for 89, and 1.89 for 91. 7-11 always charges 15 cents, etc.).

Hopefully that makes sense...
 
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