Not true on all cars. Some operate in the reverse. The base timing is set higher initially anticipating optimum atmospheric conditions and fuel quality and the knock sensor pulls it back if knock occurs. Just depends on the manufacturer.
They charge more because people will pay it. Simple.
As for greed, sure, they are in business to make money but their profit margins are around 8-9% overall. Pretty small compared to other industries.
But both the state and the federal tax on a gallon of gas is far higher than the $0.07 to $0.09 the oil companies make on each gallon of gas. Note that profit margin is less than 8%. Other products have a higher margin.
The gas station that sells it gets even less. They make it up on beer sales!
Isnāt that what I said??
If the cost to manufacturer the mid and high grades is less then 1-cent (as based on the price difference already posted here), then the gas companies are make a lot more then the 7-8 cents for every gallon of the mid and higher grades sold here. Regular is selling about $2.30. 93 Octane sells for $3.10.
That was my thought as well, but I didnāt know if the government or other institution had their fingers in the cookie jar as well.
I agree with that. And people are willing to pay that price. Possibly because there are more and more cars that require it.
No, I was trying to state the opposite. As in, the manufacturer calibrates as if the car always runs on premium and retards when knock occurs. That way the engine produces more power when premium is used. Sorry if that didnāt read the way I meant it.
Those would be the cars in the āpremium recommendedā group. It puts more trust in the knock sensor to prevent holes in the pistons.
That is what I stated, that performance would be reduced in vehicles where higher octane gas is recommended would be programmed to retard timing to prevent engine damage if knock was detected. I was replying to the theory presented that cars that are designed for 87 octane would somehow be programmed to increase performance if higher octane gas was used.
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Thereās a large portion of the population who buy higher octane because of marketing. They buy it thinking their vehicle will get better performance and mileage even though itās designed to run on regular.
Iād agree with ālarge portionā years ago. That was the marketing story to sell more profitable premium years ago and it surely supports 5 cents a gallon difference. I think that ālarge portionā is shrinking rapidly at 40 to 60 cents a gallon higher cost.
Having manufacturers build āpremium requiredā cars captures those folks who decided premium isnāt worth $6 more a fill-up using premium in their cars that donāt require it. And then we get people coming here and asking the question - because they didnāt check fuel requirements before they bought the car!
Iām not so sure. I know several people who will only use higher octane (aka Premium) even though their vehicle is designed to run on regular. Iāve tried to explain it to them, but most havenāt a clue about cars and just follow the marketing.
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old school ping would occur in engine slowly destroying pistons in engines, new technology has knock sensors to prevent this , so go figure?
Not all ECUs are capable of retarding the timing enough to eliminate knock if you decide to be a cheapskate and fill up with regular when the manual says premium is required.
I echo the others - I fail to understand why someone would buy a luxury car and then be too cheap to put the required gas in it. If you donāt like filling with premium, get a car that doesnāt require it.
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And unfortunately sometimes those sensors fail.
Fuel tax rates are readily available. Every so often they are documented in a news article. The tax is always on a generic gallon, not differentiated by octane rating. If taxes were based on octane, Iām sure a news organization would be all over it, and Iāve never seen that.
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I agree with you, but at the same time I am sure that there are a whole lot of people who donāt bother to checkāprior to purchaseāwhat grade of fuel their new car requires.
Then, after purchase, they are shocked (!) to find out that their new car requires pricier fuel, and they come to this forum in order to get āpermissionā to cheap-out on gas.
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The differential might be related to the length of supply lines. Where transportation costs are high, the difference might be larger.
A fleet mechanic I used to work with was a part of that population. Nothing I could say would change his mind.
I remember when regular was 25Ā¢ a gallon and premium was 29Ā¢ a gallon. Now if regular is $2 50 a gallon which is 10 times the mid 1950s price, doesnāt it seem logical that premium would be $2.90 or 40Ā¢ a gallon more than regular?
I liked the Sunoco blending pumps back in the 1960s and 1970s. My Rambler ran well on the subregular 190. I could save 2Ā¢ a gallon over regular.
And 2 cents was a lot more money in those days. I made $8500 a year in my first job, starting in 1974. My mom made a grand more, and I used to tease her about it. When I exceeded her annual pay a couple of years later, I really layed it on. Then she hugged me.
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