I am not sure about the prices where everyone lives, but I cannot understand why premium gas is 40 cents more than regular. I have purchased this type of fuel for 25 years. When oil was last around $45 a barrel, it was a 10 cent difference. I cannot understand the difference today, as oil has gone down the difference has gone up, It does not cost 40 cents more to make. Just seems like another money grab by our great protroleum companies. Do we ever get tried of them sticking it to us? I just do not understand that now it is an almost 25% difference in price when historically it has been around 10%. If any one knows, please share. Thanks.

It's likely old 'stock'... basically the gas stations have to sell the gas in their big ground tanks with a reasonable markup from whatever they paid to buy it from the distributors. Sounds like they have recently filled up their regular tanks with cheaper priced gas, but are still selling off their older 'stock' of more expensive premium gas. Premium should drop down once they refill their big tanks with cheaper priced premium from the distributors.
 
 

Around here, It always increases by 10 cents....
 
87 : 2.67
89 : 2.77
91 : 2.87
 
That's here in Los Angeles, Though... So not sure man.

bill1024

BF3PRO
I'd say people are realizing that there isn't much of a difference between premium and regular...

There is a big difference if you're running high compression, super-charger or a turbocharger or if your timing is advanced for better performance.
The higher octane stops detonation (pinging)that destroys pistons and cylinder heads.
I have to use 93 and pay 30 cents more per gal than regular.

Yup.  If your car doesn't need premium (95% of cars on the road) then regular is all you need.  However, there are quite a few high compression/forced induction vehicles that require premium to prevent detonation.  Anyone using premium fuel in a commuter car is throwing money out the window.

i dont run anything but 93 octane in my corvette, regular unleaded in my 91 s10. some newer cars have the stipulation inside the fuel door and in the owners manual to run minimum of 93 octane. My wifes mercedes benz had this. 93 octane only. 

 
Octane is defined as a fuel's resistance to knocking. There is no benefit if the octane is higher than what the engine needs. Engine knock occurs when fuel in a combustion chamber ignites before it should. This disrupts the engine's operation. But electronic knock sensors are now common and have nearly eliminated engine disruption. The American Petroleum Institute says if you find that your car runs fine on a lower grade, there is no sense switching to premium. The Institute recommends following manufacturer's recommendation, but even those manufacturers say that it is more of a suggestion.
 
 
So in theory, if your car runs just fine with regular unleaded, then keep using it, instead of wasting your money on premium.

I live in Indiana. Cannot believe the price difference in LA is less. My car requires it, as I own an Infiniti. I love the car. The complexity of the engine means it needs higher compression for the variable timing and it needs the higher burn fuel to get the 328hp from a 3.7L V6. I see way too many luxury cars around to think that the demand for premium has really dropped by those amounts, just surprises me. Seems like gouging to me. If it is caused by lower production then that can be the driver.

The issue with refineries is that no one wants one by them, so local governments are killing them before the can get started. They have been expanding the in Northern Indiana along Lake Michigan, but there are always reports about mercury levels coming from the plant. Given that the capacity to produce is capped, this will continue to be a problem.

You cannot forget the fact that they now dilute gasoline with this ethanol garbage, basically alcohol made from corn that does not meet standard for consumption.  Sadly, this is an excuse to charge you more when there is a drought and a freezing season in the mid west, you know...  Every year.
 
It's just a bunch of monopolized dillweeds knowing that they can raise the price to whatever they want and we will still pay it.

I generally only fill up on premium if I'm going up into mountains or areas that will be hard on the car, but I stick with regular otherwise.
 
To respond to the original question, I would think Nereus's answer is correct, that the station is selling off it's current stock and will later lower the price after receiving newer shipments.

kaninja

NordicJedi
To respond to the original question, I would think Nereus's answer is correct, that the station is selling off it's current stock and will later lower the price after receiving newer shipments.

Not correct. Prices raise at the pump regardless of what stock is in the ground tanks as retailers adjust pricing based on current wholesale pricing. On top of that they usually raise prices at the pump like a rocket when wholesale prices rise, but drop them like a feather when they fall. Commodity pricing structures do not follow typical retail market trickle down price increases.

Raise, yes. Drop, not so much.
 
Actually you say not correct to Nordic/me, but then expand on that in a way that sounds like you do agree ...?
 

kaninja

bill1024

BF3PRO
I'd say people are realizing that there isn't much of a difference between premium and regular...

There is a big difference if you're running high compression, super-charger or a turbocharger or if your timing is advanced for better performance.
The higher octane stops detonation (pinging)that destroys pistons and cylinder heads.
I have to use 93 and pay 30 cents more per gal than regular.

Yup.  If your car doesn't need premium (95% of cars on the road) then regular is all you need.  However, there are quite a few high compression/forced induction vehicles that require premium to prevent detonation.  Anyone using premium fuel in a commuter car is throwing money out the window.

And like 95% of all statistics this one is pulled out of thin air too. Many new cars run on premium, and many other cars also run on premium. Doubt it's just 5%.

Grey_Beard
I live in Indiana. Cannot believe the price difference in LA is less. My car requires it, as I own an Infiniti. I love the car. The complexity of the engine means it needs higher compression for the variable timing and it needs the higher burn fuel to get the 328hp from a 3.7L V6. I see way too many luxury cars around to think that the demand for premium has really dropped by those amounts, just surprises me. Seems like gouging to me. If it is caused by lower production then that can be the driver.

The issue with refineries is that no one wants one by them, so local governments are killing them before the can get started. They have been expanding the in Northern Indiana along Lake Michigan, but there are always reports about mercury levels coming from the plant. Given that the capacity to produce is capped, this will continue to be a problem.

Hate to rain on your parade, but variable timing is not a very complex technology. It's been in cars for decades now, and even the lowliest C segment car uses variable timing.
 
Your car requires 91/93 because it's a high compression engine with above average advanced timing. There's nothing more complex about your engine than there is in a Mazda 3 with a SkyActiv engine.

srtie4k

Grey_Beard
I live in Indiana. Cannot believe the price difference in LA is less. My car requires it, as I own an Infiniti. I love the car. The complexity of the engine means it needs higher compression for the variable timing and it needs the higher burn fuel to get the 328hp from a 3.7L V6. I see way too many luxury cars around to think that the demand for premium has really dropped by those amounts, just surprises me. Seems like gouging to me. If it is caused by lower production then that can be the driver.

The issue with refineries is that no one wants one by them, so local governments are killing them before the can get started. They have been expanding the in Northern Indiana along Lake Michigan, but there are always reports about mercury levels coming from the plant. Given that the capacity to produce is capped, this will continue to be a problem.

Hate to rain on your parade, but variable timing is not a very complex technology. It's been in cars for decades now, and even the lowliest C segment car uses variable timing.
 
Your car requires 91/93 because it's a high compression engine with above average advanced timing. There's nothing more complex about your engine than there is in a Mazda 3 with a SkyActiv engine.

Your right about that. Funny thing is my mazda 3 skyactiv is not required to use premium gas like Grey was talking about with higher compression engines. My 2.0L engine has a compression ratio of 13 to 1. Whats funny too is even if I did use premium gas I dont gain any improvements in power or fuel efficiency.

Holo
I still think that statistic is low, and that's due to several key models made by Honda that require premium. The Civic requires premium, several Toyotas do too. All new cars today are moving towards premium fuel for better gas mileage.

You mean the Civic Si requires premium.......and it accounts for a whopping 5% of Civic Sales?  So of the over 350,000 Civics sold in North America each year, about 15,000 - 20,000 require premium.

bill1024
I will look into it, but I have a feeling the price today of higher octane maybe higher because of what they have to add to the fuel to get the octane up.

To answer the OP, this sums it up.
They start out with the same gasoline. They put in additives to make the octane higher. The price of the additives must change at some point. They cannot be the same for 20 years..