Gas companies and auto makers love it when you buy premium gas. They like it so much that they try to perpetuate myths about premium gas. Myths like premium gas will lead to better fuel economy. Myths like premium gas will make your car perform better. Why do the gas companies and auto makers like premium so much?

Gasoline retailers and refiners love premium gasoline because it is so much more profitable than regular gasoline. You end up paying about 20 cents more per gallon for premium gas and the retailer only ends up paying about 8 cents more. The retailer makes 12 cents more on every gallon of high octane gas he sells.

The oil refineries make a few cents per gallon more on premium gasoline over what they make on regular when selling it to distributors. The small extra profit per gallon is multiplied by the tens of thousand of gallons of gas that refineries sell, and ends up adding thousands and thousands of dollars to their profit.

The refineries and fuel retailers aren't the only ones that get an advantage using high octane fuel. Vehicle makers use high octane fuel to increase their bottom line also. The car makers use high octane fuel to increase the perceived value of their vehicles.

If a car has to have premium gas it must have a more expensive engine therefore the car must cost more. Using that logic the car companies can get higher prices on some models by recommending only premium gas can be used in those models. This adds credibility to their contention that the car is worth more money.

Another way that car manufacturers capitalize on premium gas is by using to their advantage the anti-knock properties of premium gasoline. They do this by designing engines to be specially tuned for premium gas. By doing that they can create "premium engines" that actually do get a little more horsepower out of premium gasoline then they do from regular gasoline.

Because these engines do have some horsepower advantage it enables the car manufacturers to advertise more horsepower for their "high octane engines". Higher horsepower equates to higher cost autos which equates to higher cost for you and more profit for the vehicle manufacturers.

These optimized for premium engines actually do put out a little more horsepower on premium than with regular. But most car experts and engineers seem to agree that if you use regular in a premium engine, the difference in horsepower is so small, you probably can't tell.

Since low octane regular fuel can be used in a "high octane engine" without any noticeable change in performance and high octane fuel does not improve fuel economy why do you need to use premium gas? It all comes down to profit! Making you believe you need to use high octane fuel, the oil companies and auto makers put more money in their pockets and as a result you have less money in yours.