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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 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 oil refineries and fuel retailers aren't the only companies that profit from premium gas. Car makers use premium gasoline to increase their bottom line too. They do that by using premium gasoline to increase the perceived value of their cars.

They use this type of thought pattern:if a car can only use premium gasoline it must have a more expensive engine and since it has a more expensive engine naturally the vehicle must cost more. By using that logic, auto manufacturers can convince you that you should be spending extra dollars on their car.

Another way that vehicle manufacturers capitalize on high octane fuel is by designing engines to be specially tuned to take advantage of the anti-knock properties of high octane fuel. By doing that they can create "high octane engines" that actually do get a little more horsepower out of high octane fuel then they do from regular fuel.

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.

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.

Article Source: http://www.simplepetcare.com/pet-articles

Scott Siegel has written a 143 page book of industry insider information 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.
Click here to get your own unique version of this article.

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