Automakers Want Higher Octane Gas and Are Starting to Do Something About It

Steph Willems
by Steph Willems

Higher-octane fuel holds more energy than bargain basement gasoline, giving it the potential to generate more horsepower and deliver highly marketable fuel economy figures to automakers. It should be at the top of every car manufacturer’s wish list. But, because an extra-high octane rating would warrant an extra-large bill at the pump, muscle car owners are left hunting for that one station that sells 94.

Unlike Europe, it’s a low-octane lifestyle here in North America, though hushed, tentative first steps are being taken to give car manufacturers what they so desperately crave.

Still, no automaker wants to say it.

According to the Detroit Free Press, hush-hush work is afoot to develop ultra-premium gasoline grades and internal combustion engines that make the most out of every drop of energy-rich fuel. Oil companies and automakers are both looking to develop a pump-based solution to efficiency and emissions concerns.

With higher-octane gas, automakers could shelve the expensive development of certain gas-saving technologies. After all, who really wants to build a 14-speed automatic?

Speaking to the publication, one anonymous industry executive said the work has been kept quiet because no automaker wants to be seen as carrying the torch for the eventual eradication of cheaper fuel grades.

“Ten cents a gallon more is probably palatable. A quarter risks customer acceptance,” the executive said, adding, “Increasing octane could be the lowest-cost way to raise fuel economy. It costs far less than developing a new transmission, for instance.”

As it stands, neither the oil companies or the automakers have stumbled on a way to make Americans jump up and down with joy at the thought of pricier gas. Even the knowledge that a vehicle running higher octane fuel would go further on a tank and generate more power isn’t enough — at least, at this point — to bring consumers on board.

At the annual banquet of the Society of Automotive Engineers earlier this month, Ford’s technology and engineering head, Raj Nair, mentioned the need for “new fuel formulations” to achieve fuel efficiency goals.

In Europe, tests have shown a 10-percent power gain from 98 octane fuel over a North American premium blend. Still, the jury’s out on how far gas prices would rise if high-octane fuel became the new standard, and motorists with engines that can’t make use of the extra energy potential would likely hold a grudge.

Steph Willems
Steph Willems

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  • Zoomzoomfan Zoomzoomfan on May 01, 2017

    I didn't even realize some states had 85. Here in Kentucky, your options are 87, 89, and 93. There's even one station in town that sells ethanol-free gas for a slight premium. I should try that in my S10, since its tired old 4.3 doesn't seem to like the 10% ethanol fuel every other station has. My wife's '13 CX-5 and my '16 6, both with the "SkyActiv" motors, seem perfectly happy with the 10% ethanol 87 grade, though. I recall Cadillac's Northstars requiring premium (93 octane) fuel in the '90s. My grandma had a '99 DeVille and her friend had a '95 Aurora. Both needed 93 grade rather than 87 or they'd act all low power and stupid and knock, too. My grandma was fine with it since she said if she could afford a Cadillac then she could afford the gas for it. But, her friend dumped the Aurora partly because she was tired of paying 30 cents more per gallon every time she fueled up. I expect if cars are released that require higher octane fuel (and the fuel itself is available here, too), customers will flock to ones that don't require it. MPG doesn't equal MPD (miles per dollar).

  • Stevelovescars Stevelovescars on May 01, 2017

    I have a few questions about "Premium" gas: When gas was around $4/gallon, the price difference in California was about $0.10 for mid grade and another $0.10 for premium... or a 20 cent spread between regular and premium... maybe 25 cents some times. NOW, with gas at roughly half the price at the pump, there seems to be a 60-70 cent difference in price. Is there a technical reason for this or is it a money grab by the oil companies? I ask this because at the same time, I see a lot of advertising that blatantly seems to lie about the benefits of higher octane gas... claiming it will solve all automotive ills, give you more power in your Aveo, and save gas consumption. I think of this like pharmaceutical advertising in that it creates extra demand for a more profitable product that a lot of people buying it don't really need or benefit from. Is my perception incorrect or is that seemingly higher margin for premium grade due to higher profit and increased marketing expense? Assuming that $4 gas was due primarily to a higher cost for the raw ingredient, why would higher octane fuel cost MORE today relative to regular?

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    • WheelMcCoy WheelMcCoy on May 02, 2017

      I agree.. the price delta is mostly from marketing. Some oil companies will justify the price of premium with detergent packages that will keep your engine cleaner. I see 2 mitigating factors: 1. In Canada, I discovered Shell premium was offered without ethanol! So to me, it was worth the price. 2. Supply and demand. It costs more to make 93 octane gas than 87. In the US, 87 is the volume seller, so economies of scale help bring down the price of 87 while leaving the price of 93 up there somewhere (raising my hand above my head).

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