Why Does Premium Gas Cost So Much More Than Regular?
About 20 to 10 years ago the cost difference between regular and premium gas around the country was staying in the 18 to 19 cents area, no matter the price of a gallon of gas. For example when in 1999 the gallon was going for less than a dollar or when in 2005 it reached the price of three dollars the difference was still in the 18 to 19 cents per gallon average.
But lately that has been changing dramatically. Since two years ago this reached 40 cents and at the moment is at 47 cents per gallon extra charge for premium gas. Patrick DeHaan is an analyst with GasByddy.com and he says that things are not looking good for this price difference in the future either.
According to him allot of the newer vehicles need premium than 10 years ago. This percentage has gone from 20% to 50% in the past 20 years and in the meantime the refineries did not follow suit. While more and more vehicles were getting more advanced engines that need more precise detonations the oil industry was in a way sleeping and now there is a shortage of this high-octane fuel so they decided to raise the prices.
Either way it is not going to get better overnight. Two things will happen, either the refineries will start producing enough high-octane gas or the demand for it is going to slow down (which is highly less likely).
Luckily some stations have been paying more for this kind of fuel without jacking up the prices.