Has Premium gas ever been cheaper?

Discussion in 'General Motoring' started by Carl 1 Lucky Texan, Jul 8, 2008.

  1. as a percentage over regular that is!

    found this;

    *****despite rising gas prices, midgrade and premium fuel remain about
    10 and 20 cents extra per gallon, respectively. One unexpected finding:
    Despite the hike remaining constant all these years, more drivers may
    now be ditching pricier fuel for the regular stuff.

    It’s a bit counterintuitive. Proportionally, premium gas costs 6% more
    than regular today. In 1995 it cost 17% more, according to EPA
    historical data. As prices rise, it would make sense for the extra cost
    of premium fuel to seem comparatively smaller. *****

    from; http://blogs.cars.com/kickingtires/2...igher-gas.html


    Carl
     
    Carl 1 Lucky Texan, Jul 8, 2008
    #1
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  2. Carl 1 Lucky Texan

    Uncle Ben Guest

    In the capital of NY State, on July 8th,
    top premium is $5.00,
    regular $4.25,
    E85 $3.10 .

    Relative to regular, that's
    top premium +17.6%, and
    E85 -27%.

    In miles/dollar, that's
    top premium: 5.0,
    regular: 5.9,
    E85: 6.8

    Uncle Ben
     
    Uncle Ben, Jul 9, 2008
    #2
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  3. Certainly dealing with averages is tricky since there is such wide
    pricing variability. But, before i found that one blurb i posted, I had
    looked around at google image search pics of 'gas station signs' and
    noticed that it did seem the 5%-8% or so differential around here was
    less than some historical prices. That is, if reg. is $1.00, mid $1.08
    and premium $1.16 - that's 16% more for high octane. BUT if the numbers
    are $4.00 reg, $4.15 mid and $4.30 premium - it's only 7.5% more to
    run premium. Of course, if your car's manual doesn't recommend premium,
    it's of no benefit, but both of my cars call for it.

    Carl
     
    Carl 1 Lucky Texan, Jul 10, 2008
    #3
  4. Carl 1 Lucky Texan

    suburboturbo Guest

    It's occurred to me too that the relative price difference between
    regular (87) and premium (93) is smaller than at any time I can
    recall. Both my Subarus (04 WRX and 06 OB 3.0) call for 91 (OB may be
    90, but that's insignificant). 91 and other mid-grades are typically
    the worst alternative (cost-wise, since they're usually priced only a
    couple of cents less than. I think that's the money-maker for a lot
    of stations (who are really being squeezed now between high wholesale
    costs and driver's who think the stations are raking in profits as
    prices rise). People see a requirement in the manual for 91 and buy
    91. I usually use 93 for 2 of every 3 fillups and 87 on the 3rd, but
    depends on the amount left in the tank. I try to keep the overall mix
    in the tank in the range of 90-92 octane at the best overall price.
    Hardest part is convincing the wife to use premium at all (the 6 is
    hers) since she can't tell the difference.

    On a related issue, why are we still using (and it seems to be
    throughout the US) a decimal in gas prices? Nothing else is sold at
    retail this way, but every gas price is xxx.9 per gallon. Why can't
    this be simplified and rounded to the nearest penny? How did we get
    stuck with this ridiculous "tradition".
     
    suburboturbo, Jul 10, 2008
    #4
  5. I was told years ago when I worked at a gas station that the .9/gallon was a
    tax levied at some step in the refining/distribution process. I've never
    been able to verify that. Presumably it must be a federal tax of some sort
    since this happens across all 50 states. In another sense, it seems to be
    the same sort of advertising tactic as making a big deal out of a $1.99
    price instead of $2.00 for the same item...
    ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
     
    Jack Countryman, Jul 10, 2008
    #5
  6. The taxation of gasoline has a very complex history. I THINK the .9 is a
    holdover from an early taxing scheme.


    Carl
     
    Carl 1 Lucky Texan, Jul 11, 2008
    #6
  7. No. It has NOTHING to do with taxation. It has to do with bulk
    pricing. hen you buy , say 100 liters (or 100 gallons) of fuel and the
    price is 1.29 per "unit" the fillup costs $129.
    In order for them to raise the price of a "unit", the smallest
    increment would amount to a full dollar for your 100 "units".
    Using the decimal pricing, the price can be raised or lowered in
    increments of TEN CENTS per hundred units instead of a dollar.

    It is not a big deal perhaps, when buying in gallons, but when buying
    liters it really makes a lot of sense.

    It made a lot of sense with gallons too, when gasoline was $0.25 per
    gallon. Imagine if the smallest price change that could be registered
    was 4%!!!!.
     
    clare at snyder dot ontario dot canada, Jul 11, 2008
    #7
  8. It seems unlikely the bulk pricing would ALWAYS lead to a retail
    fraction of 9/10 .
    There seems to be a lot of folklore, multiple reasons behind the
    initiation and continuation of the practice. Plus, some efforts to do
    away with the fractional pricing. (it is, after all, impossible to
    purchase a single gallon at the advertised price due to rounding)
    http://www.users.uswest.net/~taaaz/AZgas.html
    http://www.garamchai.com/askadesi/ask12.htm

    Carl
     
    Carl 1 Lucky Texan, Jul 11, 2008
    #8
  9. It seems unlikely the bulk pricing would ALWAYS lead to a retail
    fraction of 9/10 .
    There seems to be a lot of folklore, multiple reasons behind the
    initiation and continuation of the practice. Plus, some efforts to do
    away with the fractional pricing. (it is, after all, impossible to
    purchase a single gallon at the advertised price due to rounding)
    http://www.users.uswest.net/~taaaz/AZgas.html
    http://www.garamchai.com/askadesi/ask12.htm

    also;

    http://en.wikipedia.org/wiki/Psychological_pricing

    Carl
     
    Carl 1 Lucky Texan, Jul 11, 2008
    #9
  10. Well, up here the .9 cent is not common. Prices change by the tenth
    per liter - 134.3, 134.5, 135.2, 149.6 etc.
     
    clare at snyder dot ontario dot canada, Jul 11, 2008
    #10
  11. Carl 1 Lucky Texan

    Yousuf Khan Guest

    What's E85? I assume it's 85 octane, but the lowest grade we get here is
    87 octane. Is E85 new?

    Yousuf Khan
     
    Yousuf Khan, Jul 12, 2008
    #11
  12. E85 is 15% gasoline and 85% moonshine (Ethanol)
     
    clare at snyder dot ontario dot canada, Jul 12, 2008
    #12
  13. Carl 1 Lucky Texan

    Yousuf Khan Guest


    Here in Canada, we don't always see 0.9 as the end digit. I've seen
    pretty much all of the numbers as the last digit. We do things in litres
    here though. Prices are ranging from $1.30/L to $1.50/L for regular in
    various parts of the country. That works out to $4.92/gallon to
    $5.62/gallon for your Americans! And of course the Canadian dollar is
    pretty much the same value as an American dollar these days. So you guys
    got a long way to go before you're even at our price levels.
     
    Yousuf Khan, Jul 12, 2008
    #13
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