Premium Gas (93-95 Octane) Prices Stay High -E-85 (102-105 Octane) 40-60 cents Cheaper Than E10 Regular (87 Octane)
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WASHINGTON February 5, 2016; NACS online reported that regular, unleaded gasoline has reached a seven-year low, averaging $1.86 per gallon on January 25—a pump price not realized since 2009, according to the Energy Information Administration (EIA). While that has many motorists rejoicing, those driving high-performance or luxury vehicles are paying on average 48 cents more per gallon for premium fuel, Cars.com reports.
Those numbers mean that a gallon of premium gasoline was 25.8% more than a gallon of regular—the highest percentage difference in more than two decades, according to the EIA. Why the big discrepancy?
As prices are falling, you traditionally tend to see prices fall at a slower rate [for premium] than regular gasoline prices, and that's in part because of just the physical turnover,” said Avery Ash, director of federal relations at AAA. That translates into regular gasoline being more competitive, with on-hand stock turning over quicker than premium.
John Eichberger, executive director at the Fuels Institute, concurred. “It wasn’t so much premium became more expensive—it’s just that regular became cheaper,” he said. The Fuels Institute, founded by NACS in 2013, is a nonprofit research-oriented think tank. “I’ve got 80% to 83% of my volume as regular unleaded, so I need to be viscous on price. My premium customer doesn’t really take time to shop around, so I can possibly make up some of my lost margins.”
While premium gas usage has dropped significantly, there are signs that it might be making a comeback. Luxury car sales have risen 43.4% since 2011, which will mean more owners gassing up with premium.
