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Try buying gas in any other country, with possibly the exception of Saudi Arabia and the UAE, and tell me that we're getting screwed. We have it great by comparison.
If you exclude Mexico and Venezuela you have a point.
Too bad those two countries are located so far away.
Steering the discussion away from gas prices in general & back to OP's orig issue of the difference between reg & premium gas prices.
Most stations in the Houston area: $1.99 for reg & $2.49 for premium.
That's 50 cents more (or 25% more) for the refiners to add a few more Oxygen molecules.
Been told that it costs the refiners 5 - 8 cents to more make premium than reg.
The bottom line is that they can charge 50 cents more, rather than only 20 cents more before, is that they can & they have done a much better job of advertising & convincing consumers (esp many other non-performance car owners) that premium gas so such much better for their cars than just reg. Thus, their premium gas profits subsidizes their competitiveness in keeping their reg gas prices low.
Just like DeBeers has convinced us that we're cheap bastards for not spending 2 months salary for a chunk of carbon...
Try buying gas in any other country, with possibly the exception of Saudi Arabia and the UAE, and tell me that we're getting screwed. We have it great by comparison.
No kidding! Try buying gas up here in Canada, right now the stations near me are all posting a price of just over $1 per liter, so that works out to $3.82 per gallon and that's for 87 octane! If you want premium, it is $4.50 per gallon! So not only is our base price higher, but they gouge us even more for premium! They can't honestly think we believe that it costs almost 70 cents more per gallon to make premium in Canada?
While I really am not complaining about the current pricing it is rather annoying to watch the price increase as much as it has for a relatively small jump in the price of crude. I was hoping to tank up on premium at under $3.00 at least once but the way this winter is going I don't think it will happen.
Try buying gas in any other country, with possibly the exception of Saudi Arabia and the UAE, and tell me that we're getting screwed. We have it great by comparison.
I did the original post on this issue and responses are interesting. I realize the US prices for gas are reasonable compared to other countries. That's sort of a no brainer.
My question evolved around what used to be a $.20 increase from regular to premium all of a sudden became a $.50 difference.
No big deal to me but something smelled a bit rotten. Pretty much has been confirmed by the various answers here.
Thanks guys.
Not that long ago I noted mid grade gas was $.10 higher per gallon per gallon and premium another $.10.
The difference has gradually crept up and noted today that mid grade was $.25 higher and another $.25 for premium.
Everybody experience this?
It doesn't bother me greatly other than the fact that I suspect these suppliers are seeking extra profits. In a short period of time they go from $.20 per gallon to $.50 per gallon from regular to premium.
I did the original post on this issue and responses are interesting. I realize the US prices for gas are reasonable compared to other countries. That's sort of a no brainer.
My question evolved around what used to be a $.20 increase from regular to premium all of a sudden became a $.50 difference.
No big deal to me but something smelled a bit rotten. Pretty much has been confirmed by the various answers here.
Thanks guys.
The actual cost difference to refine premium is about 8 cents per gallon. That’s true even in the west where most premium is 91 octane, because the California air pollution rules make it more expensive per unit of octane increase to generate higher octane ratings out there. The reason that pump price differential is so much higher is that individual stations charge more for premium until its high price chases off customers. That’s true of any premium product, whether gas or a washing machine. The extra profits made from premium then allow them to charge less for their regular product, thus reducing the amount of business they would otherwise lose to the cheapo brands who don’t sell as much premium. There’s nothing rotten or dishonest about it. It’s normal marketing behavior of all companies. If you want to blame someone, blame all the people who stupidly use premium when they don’t need it. They are the ones who bid up the price. Those of us who actually need premium end up paying the penalty for their stupidity.
The bottom line is that they can charge 50 cents more, rather than only 20 cents more before, is that they can & they have done a much better job of advertising & convincing consumers (esp many other non-performance car owners) that premium gas so such much better for their cars than just reg.
J
That's not the reason. It's because not many cars use premium anymore and those tanks take up too much room in a gas station for a product that does not sell too much. So they sell it alot higher to justify carrying it.
