csj0219

I live in Canada and I noticed the price gap between 87 octane and 91 octane is $0.22/ liter these days, compared to $0.15-0.18/ liter couple months ago. I'm guessing same thing is happening in the states as well (I notice there's close to 40 cents a gallon difference?)

Does anyone know why this is happening?

a77

Varies round here in Calgary. 13 to 25 cents more.

Ken1997TL

Inflation & it's a percentage increase

BEAR-AvHistory

Refining process is more expensive & some brands have different additive packages for premium on top of that, but the spread at the pump is market driven. As much as they can get away with.

loulinjai

As mentioned in previous posts, it's market driven. Rack (terminal) pricing usually has a 4.5-8cent/L spread between 87 and 91 octane in Canada, depending on geographic location. A typical station will have 3 tanks with 2 tanks being 87 and 1 tank being 91. 87 sells in a lot more volume so maintenance costs of servicing two tanks over a much more volume vs one tank of 91 over smaller volume equals higher cost per liter.

I fill up my car at Costco, top tier gas and only 10cents/L for 91 over 87, always first to lower prices and last to raise prices. On some days 91 at Costco is cheaper than 87 at other stations. If you don't have a membership, it's worth it to buy one just to fill up even if you don't buy a single thing in store. This, of course only makes sense if you live reasonably close to a Costco.

black label

The real answer is shale. Shale is easy to refine to 87 octane, hard to refine to 91. It is much more costly to refine premium from shale than crude. We are relying on shale more an more in North America and that is why the price decrepancy from regular to premium is at it's largest.

black label

An all these people saying it's market driven are talking out of their asses.

Google "shale vs crude premium fuel" and confirm it.

fsttyms1

The majority of it is is in the refining, another big chunk is in all the different versions/blends of it. Just about every state has their own blend/formulation of it which is part of the reason for the cost variations

charliemike

This would explain why the spread has grown from $.20 to $.50 a gallon.

black label

That's what made me start looking into it. In my area 87 was hovering at about 3.00-3.10 while premium was still in the 3.80 range. It used be be 10-20 cent increments from regular to premium, now it seems to be 15-25 from reg to mid and another 40-60 cents from mid to premium.

I don't think it's cost effective to refine shale into premium at all. I believe most premium fuel is still refined from the more expensive crude as the extra costs of refining outweigh the extra cost of crude over shale.

BEAR-AvHistory

Its market whether you want to believe it or not. I can get 93 premium is some stations for less than 87 regular at others.

Right now within 10 miles regular 87 varies from 2.02 to 2.39. 93 varies from 2.37 to 3.09.

Premium costs more to refine but the pricing does not reflect the actual cost spread. Market does.

Prices will vary in Raleigh depending where the stations are located, high or low income areas, highways, station density etc while in neighboring Cary, a bedroom city they are uniformly high.

One of the biggest components of fuel pump price is Fed, State & Local tax.

black label

Ahh, but that's not the question is it. Gas costs more in New York than in Idaho, who cares.


The question is why has the premium price for premium gas grown higher than it ever has been? Shale, end of story.

Keep talking out yo ass and don't look up the current state of automotive fuel.

BEAR-AvHistory

I expect the people in NY do.


93 octane at $2.37 a gallon is higher than its ever been? What planet have you just arrived from? Last year 87 was $3.36 a gallon at the same station & 93 was $3.50

neuronbob

Great thread. In my area most stations are now charging a spread of 40-50 cents between 87 and 93. A few stations are still using the traditional 20 cent spread, and depending on price that day, that's who I use. It started during the recession and so I initially thought the idea was to soak people who could afford premium, but I came to understand that a lot of it is refining costs. There's a lot of shale produced and refined here in Ohio.

juniorbean

iTrader: (5)

I believe he's saying the spread between regular and premium is at an all-time high, not the actual price.

Oh, and don't mind Black Label. He usually has some good stuff to say, but b/c of his approach and the way he replies like a defensive/combative teenager and not someone who is in their 40's, people don't always pay him much mind. Just wanted to make sure you knew that in case you continued this conversation with him...

Legend2TL

, did not know that.

Legend2TL

, also didn't know that

dallison

I have also noticed the greater spread between the grades of gas. It used to be 10 cents difference between each grade. The it was 20 cents from the middle grade to super.

Now, i am starting to see a 20 cent difference between each grade.

juniorbean

iTrader: (5)

He's a good dude who knows a lot of stuff, but can be a little rough around the edges. BEAR is an older guy with a lighter touch... so just wanted him to be aware in case the exchange continued...

black label

It's easier to just say black label is a masshole

juniorbean

iTrader: (5)

^ LOL...probably. I'm just not sure how many people in Car Talk know that term and its history on AZ

black label

I've been a masshole long before azine or even Acura existed

juniorbean

iTrader: (5)

^ Oh yeah, being originally from NY I know a few myself. Just not sure if everyone else knows what it means

dallison

for us old timers on here it's a given the masshole lifestyle. I'm more surprised of those who don't know.

black label

I guess the main thing is if you think you are insulting us by calling us massholes, you're doing it wrong. We wear that like a badge of honor.