Why is premium gas almost always 20 cents more than regular?

Question

When regular gas was a $1.00, premium was 20% more, $1.20. But when gas was $2.00, premium was only $2.20?, only 10% more. Leads me to believe that it really doesn't cost more to provide premium, but the consumers take a hit nonetheless.

Answer 1

The question is , why are you using premium. Premioum does not get better mileage than regular. Unless your manufacturer requries it, don't use it. You can tell if you need to by using it and listening to the engine as you accelerate. There is a spark knock or rattle due to pre ignition of the fuel. Premium will not do that. If you don't have that, then why use permium. Almost all cars will run on regular. Test s by large companies show no better fuel milage using premium.

Premium comes off at a different point on the refinery stack. There is less produced, and apparently a shorter supply available. Diesel for example used to be cheaper than gas. Now there is a shorter supply and so the prices are higher. Premium also has some additive packages, but they are of questionable value.

Answer 2

The "grades" of gas are based upon the octane point. the version is performed interior the refining technique. the quantity of everyday gas you are able to refine from a barrel of oil, is a similar via fact the quantity of top rate gasoline you are able to refine from a barrel of gas. the cost distinction relies on the refining technique, because it takes greater refining technique to make a greater advantageous octane gas. hence, the cost distinction between the two porducts is unaffected, despite the fact that if the backside cost of oil is $4 a barrel or $seventy 4 a barrel. What you're procuring is the refining rate, which has no longer replaced. Out of a $3.00 gallon of gasoline, the cost ofthe base oil is approximately $a million.60, the cost of refining and transportation is approximately 60cents, the the taxes to the Fed and state is approximately 60 cents, the interior reach gasoline station makes approximately 10 cents, and the great undesirable oil corporation is making approximately ten cents to boot. Oil companies make quite some money, via fact they sell quite some gasoline. no longer via fact they make lots on each gallon.

Answer 3

Premium is higher octane, therefore it does cost more to prepare for the consumer. Supply and demand fits in too, since few cars require premium fuel.

Answer 4

Could it be that the additives that raise octane have not increased in price?

Answer 5

u made a good point,never thought about it that way.