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Page added on March 18, 2023

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Gasoline Is About To Get More Expensive

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Here’s some bad news for drivers of luxury cars and large sport-utility vehicles who are pumping the top grade of gasoline: the premium they pay over regular fuel is getting pricier.

US and European refiners are scrambling to get enough octane to make high-quality gasoline. There are several potential reasons for the shortfall, including the fallout of Russia’s war in Ukraine, the impact of US environmental regulations and a lack of refining capacity.

The net effect is that it’s making the fuel even more expensive than usual, when compared to regular unleaded. In the US, the price gap is around 75 cents a gallon — about 15% more than during the same period last year — data from automotive group AAA show. In the UK, the premium has widened by 25% on an annual basis, the most recent monthly data show.

Octane itself is a hydrocarbon, produced in the refining of crude oil, though consumers generally know about it through the so-called octane rating for gasoline. A higher value means the fuel is more stable and less likely to cause engine knock. Vehicle manufacturers often recommend high-octane gasoline — the premium grades at the pump — to get peak performance from turbo-charged or high-compression engines.

Even regular gasoline contains octane. However, the shortfall shouldn’t be problematic because there are more low-octane components available for making regular gasoline than high-octane fuel.

The octane shortage for premium gasoline is of particular concern as refiners move away from winter-grade. That type of fuel uses butane which is generally more plentiful, from natural-gas processing to increase octane.

The European Union and the UK last month banned most seaborne imports of Russian petroleum products, reducing the region’s supply of naphtha, a key component in making gasoline. Meanwhile, the European petrochemical industry has cut supply of octane-boosting additives as high energy costs and weak demand curbed operations.

The loss of these Russian feedstocks is critical for gasoline markets this year, according to consultant Energy Aspects Ltd. Octane tightness is set to become more evident as refiners switch to the production of summer-grade fuel in April, the researcher said.

Separately, US “Tier 3” environmental regulations, which require lower sulfur content in gasoline, have created complications.

Compliance with the rules requires more severe hydrotreating of naphtha and gasoline during refining. The process destroys octane, thus contributing to a shortage and helping to widen the value of premium gasoline to regular grade.

The gasoline sulfur standard for the rules took effect in 2017. In 2020 fuel demand dropped due to pandemic-related travel restrictions. The true effects of the regulations started to become clear last year as gasoline consumption recovered, according to analysts at Bank of America Corp.

“Meeting lower sulfur requirements comes at the expense of octane levels, which likely contributed to soaring prices for high octane blending components,” they said in a recent note. “This dynamic should continue in 2023 and may lead to similar explosive upside in gasoline prices this summer.”

To be sure, there is debate on what’s behind the octane shortfall. Wide octane spreads — the price difference between wholesale prices for premium and regular-grade gasoline — were primarily driven by a shortage of refining capacity, according to Robert Auers, manager of Refined Fuels Analytics, a division of RBN Energy.

Because of the lost capacity, there aren’t enough reformer units to upgrade low-octane naphtha, to raise its octane levels for use in making premium gasoline. That may eventually change as new refinery capacity comes online this year. “Still, we have octane spreads staying moderately wide,” Auers added.

RIGZONE



68 Comments on "Gasoline Is About To Get More Expensive"

  1. theluckycountry on Tue, 21st Mar 2023 3:29 am 

    eee eeeee is a typical example of what has gone wrong in society. 50 years ago he/it would have put into an asylum and given electroshock treatment, 80 years ago they would have used water methods, but either way it would be off the street and causing no harm.

    A classic case of delusional paranoia, I hope the FBI is watching this thread, eee eeee needs to be locked up before it does any harm in society. I 100% agree with the Fema camps springing up all over the US, one the meds run out they will do a roaring trade in lunatics.

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  5. Duncan Idaho on Tue, 21st Mar 2023 10:45 am 

    Reckless Capitalist Banks Rescued by Government Socialism – Again!
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    https://www.commondreams.org/opinion/socialism-for-wall-street

  6. supremacist muzzies On This Day 2012.03.21 Afghanistan Muqur 3 15 A Taliban rocket fired into a bazaar shreds three civilians on Tue, 21st Mar 2023 10:46 am 

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  7. Dredd on Tue, 21st Mar 2023 2:10 pm 

    “Exxon’s Snake Oil” (Link)

  8. thanks to elite whitey supertard big muzziebeard of jihadwatch “Ramadan is the pious month of ‘Jihad-o-Qital’ (Jihad and killing). Those who attain martyrdom while waging Jihad, doors of heaven remain open.”Maulana Bashir Ahmad Khaki on Tue, 21st Mar 2023 2:32 pm 

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  11. makati1 on Tue, 21st Mar 2023 5:16 pm 

    theunluckycountry, it is amazing that we agree on two things in the same week. I assume that the site owner doesn’t care anymore about who is using it. They post a few articles vaguely associated with the title and then ignore it for a week, collecting whatever $ flows in. perhaps they are just as drugged up as the eee’s now.

    I hope they are prepared when the shit hits the fan big time soon. No, on second thought, I hope they are in denial. They deserve the pain coming. This used to be a site where intelligent, mature, sane people could debate peak oil and world events with out the eee’s interfering and dominating the site. Even my debates with the Missouri Mule, Davy, got the attention of others and added to the hits. No one is going to reply to the insane eee’s. All will leave the site to the idiot eee’s soon if they are not blocked. I have better things to do with my time than scroll past shit.

    BTW: that includes reading any of Duncan’s propaganda.

  12. supremacist muzzies 2023.03.20 (Burkina Faso) Jihadists booby-trap the body of a young man, leading to the death of five women who came to retrieve him on Tue, 21st Mar 2023 11:11 pm 

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  13. Danilo on Mon, 27th Mar 2023 8:59 pm 

    The europians are a feckless pack of degenerate nation states. They have shot themselves in the feet more times than 1 can count. Now they are trying to lead hundreds of millions of their citizens back into to poverty due to oil depletion but its not going to be a smooth ride. the french and german protests are just the beginning, the only way they can cover this another world war

  14. theluckycountry on Mon, 27th Mar 2023 9:02 pm 

    All will leave the site to the idiot eee’s soon if they are not blocked. I have better things to do with my time than scroll past shit.

    Better things? like chasing ladyboys up dusty alleys? Don’t let the door hit you in back on the way out.

  15. Papa's Pizzeria on Tue, 28th Mar 2023 9:38 am 

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