Looking for a pop from premium gasoline? Look again

It may not change human behavior, but if it did, a recent AAA report on the benefits of premium gasoline might cut into what on paper looks like a pretty profitable business.

In the study, released in the middle of last month, AAA — the long-standing interest group that looks at automobile issues through the lens of the car owner and driver — doesn’t mince words.

The amount of money the average American spends on premium gasoline in cars that don’t need it is “wasted.” In the last year, it puts that figure at $2.1 billion. “Today, many motorists believe that premium grade gasoline will give engines designed to run on regular a variety of benefits, including more power, lower tailpipe emissions, and better fuel economy.”

The paper spells out in detail the testing methods used by AAA, and the answers are pretty unambiguous in its “Key Findings” section. Verbatim…

  1. Does an engine designed to operate on Regular gasoline produce more horsepower when operated on Premium? No consistent differences in maximum horsepower were recorded.
  2. Does an engine designed to operate on Regular gasoline get better fuel economy when operated on Premium? No significant differences in fuel economy were recorded.
  3. Does an engine designed to operate on Regular gasoline produce fewer tailpipe emissions when operated on Premium? No consistent differences were recorded.
The report is more verbose than that, but once you make those points so bluntly, there isn’t too much more that’s needed to be said.

Yet, marketing of premium continues. Why? Numbers tell a pretty straightforward story. According to AAA, premium is on average 23% more than the cost of regular at the pump. Specifically, on October 12, the daily AAA survey of retail gasoline prices showed a nationwide price for retail gasoline of about $2.25/gallon. For premium, it was about $2.75/gallon, almost 23% exactly.

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