The Price You Pay (for Premium Gasoline) - The Widening Price Differential Between Premium and Regular Gasoline
Over the past five years, the price differential between regular and premium gasoline has been widening steadily. According to the Energy Information Administration (EIA), as of July 2017 the premium -vs.-regular differential reached $0.53/gallon — more than double the differential in 2012. This has produced cringe-worthy experiences at the pump for consumers requiring the premium grade and an incentive for refiners to optimize the gasoline pool. Consequently, refiners have been making operational adjustments and capital investments to squeeze additional high-octane components out of their feedstocks. Today we examine the premium-regular gasoline differential, provide a primer on gasoline blendstocks and octane levels, and discuss some contributing factors to the widening divide between the pump prices of 87- and 93-octane gasoline.
