Extra Profit for Car and Gas Companies When You Buy Premium Gas!

By: Scott Siegel


Auto makers and Gas companies really like it when they are able to convince you to buy premium gasoline. They like it so much they continue to perpetuate half truths about premium gasoline. Half truths such as premium gasoline will provide better fuel economy. Half truths like premium gasoline can increase your engine's performance. Actually these aren't even half truths they are full blown myths.

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 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 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 benefit of premium gas that auto makers capitalize on is to take advantage of the anti-knock properties of premium gas. By designing engines to be optimized for that property of premium gas they can create engines that in fact do get more horsepower out of premium then out of regular.

Since there is some horsepower gain it allows the car makers to advertise higher horsepower ratings for their engines. Again, higher horsepower ratings means more expensive car which means more profit for the auto makers.

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.

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.articleyard.com


Information about the Author:

Scott Siegel is the author of a 143 page manual 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.
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