Octane's Allure Hurt by High Cost
This year many drivers stopped using premium fuel. The switch will be permanent for some.
By Elizabeth Douglass, Times Staff Writer
This year's soaring gasoline prices pushed droves of drivers to part ways with their premium.
As overall gasoline consumption has increased despite record prices, premium fuel has taken a hit. Nationwide, daily volume of high-octane gasoline sold in the first nine months of this year fell 6.4% from the same period last year, while purchases of mid-grade gasoline dropped 3.6%, according to the Energy Information Administration, an arm of the Energy Department. The volume of regular gasoline sold rose 4.3%....
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Switching to a cheaper, lower-grade fuel — or "buying down" in dealer parlance — is a common consumer reaction to sharp jumps in retail pump prices. But with each cycle, only some of the octane-hoppers return to the pricey stuff, and that accelerates a long-term trend away from premium, said David Portalatin, an auto industry analyst at NPD Group, a Houston-based market research firm....
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Nationwide, only 7% of consumers said their last gasoline purchase was premium grade — a new low, according to an NPD survey of fuel purchases through October. A decade ago, consumers shelled out extra money for premium about 19% of the time, Portalatin said.
Today's premium fuel — gasoline with an octane rating of 91 or higher — typically costs about 20 cents a gallon more than 87-octane regular. Mid-grade fuel, with 89 octane, usually splits the difference in price....
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