Premium gas pricing out of line

[Senseless]

I don't remember when premium gas was so much more (proportionally) expensive than regular. Premium used to be about 10% more expensive than regular, but now I'm paying 25% more. The Exxon I went to tonight was $2.29 regular, $2.89 for premium. Same for Shell. Are you seeing the same in your region?

[S4NJ]

Where you?


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[brianc21]

I paid 2.39 at BP, regular was 1.99.

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[GRUMPY-S4]

Here in TX its $1.69 and $2.09... Normally you see .40-.50 difference

[priceprince]

Gas is so cheap right now (knock on wood), I don't even notice.

[phxS4]

i pay around 220. Sometimes I am in the 1.90s if I fill up at a shell or safeway with grocery points. There is a jump between reg and prem here but I don't think it is 25%....

[Senseless]

I think this gap was typical, when prices were higher:
http://www.audizine.com/forum/images/attach/jpg.gif

[GRUMPY-S4]

Gas will not be going up for the next 4yrs at least! OPEC is flooding the market with oil! Oil could hit low 30s or even 20's this year!

[14S4GWM]

^ I wouldn't bet on that!

[StealthBlackA4]

Premium is $2.25 here, but with my fuel perks...I normally end up paying $1.80-90, sometimes even less depending on how much grocery shopping happens!

[homelessNY_LI]

Reg here is like 2.15 but 93 is 2.63

[BillyG]

Premium has jumped in price in WI too. It was $0.20/gallon more for a long time, over 10 years. Then about 1-2 years ago it jumped to $0.40/gallon more, now it's at least $0.60/, up to $1.00/ at some stations! I live very close to a Costco, that's the best price for premium in the area.

[GRUMPY-S4]

^ I wouldn't bet on that!

Why not? Read or Google! And you will see. Iran just came into the market now. OPEC refuses to reduce their output with fears they will lose market dominance. Their cost is super low... So by flooding the market they prevent others (US) from getting in the game because our cost is more to produce a barrel than the going rate.

[tgsweat]

Its about a 50-60 cent difference where i am in MD

[Johnnycash]

tbh i dont pay much attention when gas is sub>3 bucks or so...burned premium in most of my cars for the last 10 years-ish

[jokingjimmy]

$0.40 difference here in Florida. I bet it's because there are more premium burning cars on the road

[Troglodyte]

Article below explains why the spread is at an all time high.


As gas prices collapse, high-octane fuel fetches unusually fat premium
Yahoo Finance By Michael Santoli
January 14, 2015 10:05 AM



The oil-price crash has provided dramatic relief for pain at the pump. But drivers who like to fill up with premium-grade gasoline are feeling a twinge of discomfort as they’re asked to pay an unusually hefty added charge for the good stuff.

With U.S. crude-oil prices collapsing from near $100 per barrel last summer to below $45, the average national retail price for regular unleaded gasoline has tanked by 43% since June 30 to $2.07 per gallon this week, according to the U.S. Energy Information Agency. High-octane premium gas dropped, on average, by only 37% to $2.49 a gallon.

As a result, the price spread between premium and regular unleaded has spiked to a record high above 40 cents a gallon, as the chart below makes clear.



The fat premium that’s now being demanded for premium is one more reason for most drivers to stick to plain old 87-octane regular – which is perfectly fine for the vast majority of recent-model cars.

On a percentage basis, premium gas is now more expensive vs. regular than at virtually any time in the past two decades. The last time premium was priced more than 20% above regular was a brief stretch in 1998 – when regular unleaded cost just over $1 a gallon.

The reasons for the widening price between regular and what used to be known as “high test” involve demand, supply and chemistry.

Regular unleaded accounts for close to 90% of all gasoline sold in the U.S., which means that refineries are geared to maximize its production and retail outlets compete most directly based on its price.

Because premium-gasoline buyers -- mostly owners of expensive, high-performance cars – are already geared toward paying extra, gas stations feel less pressure to slash those prices as quickly. In this way, the market for gasoline reflects the broader consumer economy: There is some pricing power at the high end, while most retailers are aggressive in catering to the value buyer.

And because premium makes up such a small portion of the gas sold, retail inventories don’t turn over as quickly. This means retailers might have more high-octane fuel on hand that was bought when oil prices were higher, so premium grades don’t re-price as quickly as petroleum prices fall.

A widening gap

Even before excess global supply and OPEC’s refusal to curtail production crushed the oil market and drove pump prices down late last year, the gap between regular and premium grades had widened beyond the historical norm.

For this, car-pampering motorists can blame one of the same factors that has made energy cheaper for everyone: the boom in North American shale oil.

It turns out that the type of crude drawn from shale formations is rich in low-octane chemical components and therefore far easier to refine into regular unleaded. Foreign-sourced oil, such as the kind that OPEC producers supply, is easier to turn into high-octane premium.

There was an expectation in the industry last fall that once seasonal refinery maintenance was completed before year-end, the output of premium gas could catch up and close the price spread. But it seems the oil selloff has dragged regular unleaded prices lower so quickly that the spread has, in fact, grown a bit.

This need not be a concern for most drivers, of course. Most cars are built to run on regular gas, and using premium grades won't boost performance or fuel efficiency.

While some luxury and sports cars with high-compression engines still recommend the use of high-octane grades to avoid “knocking and pinging,” even many high-end models today have software to adjust ignition timing to suppress such noises.

More than ever, it pays to be cheap at the pump these days.

[Ruprecht]

Not sure what the typical spread is here since I only buy gas at one station. I'm in a small town in the hills of NC, only place sells premium with no ethanol and it happens to be a Shell station. Just filled up yesterday and regular was $1.97/premium $2.77.

[Works2shoot]

I always thought it was so that the station could price regular at a lower rate to get folks to stop in and fill up.

[focusaudi]

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[Bikel]

you want to ask about 'out of line'? no sympathy here as prices in CA (especially SoCal) tend to remain $.75 -$1.00 higher per gallon than elsewhere across the country. premium currently averaging $3.20 -$3.30...

[Senseless]

you want to ask about 'out of line'? no sympathy here as prices in CA (especially SoCal) tend to remain $.75 -$1.00 higher per gallon than elsewhere across the country. premium currently averaging $3.20 -$3.30...

How much is regular at the same stations? I'm curious if the % gap is as wide as ours is at that higher price level.

[fillyo]

I remember when premium was $0.20 more than regular, and plus was $0.10. Now, it's 0.20 to 0.30 cent jump from regular to plus, the plus to premium. I think it's because so many cars no require premium now, so the industry knows they can charge more and consumers have to buy.

[LYKUNO]

$1.73.9 for regular, $2.13.9 for premium here in NE Ohio today.

[Jay@JXB]

Premium has jumped in price in WI too. It was $0.20/gallon more for a long time, over 10 years. Then about 1-2 years ago it jumped to $0.40/gallon more, now it's at least $0.60/, up to $1.00/ at some stations! I live very close to a Costco, that's the best price for premium in the area.

BillyG whereabouts in WI are you? Don't see too many people on here from WI. I'm in East Troy 30 miles SW of Milwaukee.

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[SDV325]

Shell has now started charging $0.21/LITER over regular (87). And this is for only 91 octane. Turns out to be $0.80+/USGal

And even though gas prices are still nice "low" we are still paying $0.90/LITER for regular or $1.11/LITER for 91 on a good day.

Usually we are still about $4.50-$5.00/gallon! Thats something to complain about lol

Thankfully we have Costco stations as well, takes the sting out of it a bit.

[theswoleguy]

Hell e85 down the street is higher than mid grade about 1 mile down the road and only $0.10 cheaper than premium at that station.

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[Dr GP]

I've also noticed that Diesel used to be more expensive than premium here in SE PA. Now its less than regular . WE also have more than $.60/ gal tax in PA.

[theswoleguy]

I've also noticed that Diesel used to be more expensive than premium here in SE PA. Now its less than regular . WE also have more than $.60/ gal tax in PA.

Same price as premium at my station. 😐 87 is 1.87 though

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[hotleadsingergu]

I remember when I first started driving (around 2000) unleaded fuel was $0.99, leaded was $1.09, and premium was $1.19. There was always that same gap up here in Ohio, until just a few years ago. It was always $0.20 more than unleaded. Now, it's generally $0.60+ different.

[jimrobbington]

I remember when I first started driving (around 2000) unleaded fuel was $0.99, leaded was $1.09, and premium was $1.19. There was always that same gap up here in Ohio, until just a few years ago. It was always $0.20 more than unleaded. Now, it's generally $0.60+ different.

I recall 0.79 per gallon when I was in high school in the 90s. I miss those days. Though gas is way cheaper now than a few years ago.

[Bikel]

How much is regular at the same stations? I'm curious if the % gap is as wide as ours is at that higher price level.

$3.07 unleaded / $3.28 premium

[VenturiRS]

1.95 reg
2.55 pre at my costco

2.10 reg
2.65 pre at my locals

[jygesq]

$3.07 unleaded / $3.28 premium

you CA guys get hosed on gas , even now

[Cartoon]

... and California gas prices out of line in general. $3.25 for 91 in communist-run SoCal.

[wwhan]

Not much difference between premiunm (91) and regular (87) here in Norcal, but diesel is cheaper than regular: http://www.gasbuddy.com/Station/4112

[homelessNY_LI]

Not much difference between premiunm (91) and regular (87) here in Norcal, but diesel is cheaper than regular: http://www.gasbuddy.com/Station/4112

That's what I'm used to spread wise but not anymore

[jygesq]

CT 2.09.9 REGULAR 2.71.9 PREMIUM 93 OCTANE ( NOT 91) Shell gas , Bloomfield, Ct just a few miles from Hartford, CT

[Senseless]

Premium buyers get screwed because we'll pay whatever the retailer wants, up to $3 or so. Beyond that, too many people will downgrade to regular so they can't get away with gouging us. That's my theory anyway.

[jokingjimmy]

I just filled up with Shell 93 Octane. $1.89 for 89 Oct./ $2.39 for 93 Oct.

$0.50 difference. Brutal. And by the way, better way to look at the price difference not as actual money difference, but percentage. So for me it's what ... 26% more expensive for premium grade? At least it's not as bad overall as SoCal. I lived in San Diego, and even a Prius is expensive to drive lol.