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

Vehicle manufacturers and oil companies love to make extra profits so they love it when they are able to persuade you to purchase premium fuel. They like it so much they continue to perpetuate inaccuracies about premium fuel. Inaccuracies such as premium fuel will provide better fuel economy. Inaccuracies such as high octane fuel can enhance your engine's performance. Actually these aren't inaccuracies they are complete 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 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 refineries and fuel retailers aren't the only ones that get an advantage using high octane fuel. Vehicle makers use high octane fuel to increase their bottom line also. The car makers use high octane fuel to increase the perceived value of their vehicles.

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.

Because these engines do have some horsepower advantage it enables the car manufacturers to advertise more horsepower for their "high octane engines". Higher horsepower equates to higher cost autos which equates to higher cost for you and more profit for the vehicle 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.

Since low octane regular fuel can be used in a "high octane engine" without any noticeable change in performance and high octane fuel does not improve fuel economy why do you need to use premium gas? It all comes down to profit! Making you believe you need to use high octane fuel, the oil companies and auto makers put more money in their pockets and as a result you have less money in yours.

Article Source: http://www.orbitaloc.com/

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.
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