Why is premium gas so expensive? More Americans are filling their cars with it | CNN Business
The price displayed above that third button on the gas pump averaged more than $5.40 for several days this spring. American drivers still couldnât get enough. Premium gas now costs around a buck a gallon more than regular â way more than the price âpremiumâ that drivers paid for the higher-octane stuff a decade ago. Yet demand for premium gas is up. That makes some sense: More new vehicles recommend or require premium-grade octane levels of at least 91. But many drivers falsely believe high-octane gas offers a kind of treat for their engines. High gas prices during the Iran war never really changed Americansâ driving habits. Thatâs particularly true for owners of higher-end SUVs, trucks and luxury cars that actually need a higher octane level. Whatever the reason for the rise in demand, gas stations have turbocharged price hikes for premium gas over the past couple decades, creating a profit engine for station owners. Historically, high-octane gas has cost about 20 cents a gallon more than regular â barely budging for decades. But that difference started to gradually widen around 2005 before taking off like a rocket a decade later. That gap grew to 40 cents in 2015, h
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