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Subject:Re: Octane. NVC
From:mike miller
Date:Thu, 14 Jun 2001 12:49:49 -0700

My 'expert' says the additional cost of high octane over regular is about 5
cents a gallon.  Mid grade is 2/5 high  mixed with 3/5 regular so costs
about 2 cents a gallon more.

Gasoline pricing doesn't follow classic economic rules except those of a
[mostly] monopolistic situation [ I forget the actual economic word
descriptor]

JMO

Mike

----- Original Message -----
From: John Brush <jbrush@AROS.NET>
To: <vanagon@GERRY.VANAGON.COM>
Sent: Thursday, June 14, 2001 11:17 AM
Subject: Octane. NVC

> >
> > I understand in theory why you need less octane in higher elevations,
but
> > why do they charge more for less octane.  I remember $1.50 /gal gas in
the
> > Vail area back in 1993.  Transportation costs can't be that much more?
>
> Tourist areas seem to always charge more for gas. Get close to a NP or
> popular area, and the prices go up. Its wrong, but I think its pretty
> normal.
>
> More intriguing in the price category is the question of why the
> difference between grades is nearly always 10 cents?
>
> When it was about half a buck, prices were 45/55/65 (leaded stuff back
> then)
>
> Made it around $1, so it was 95/105/1.15 per gal.
>
> Around $1.50, it was 1.45/1.55/1.65
>
> Now approaching $2, we see 1.95/2.05/2.15 per gal.
>
> This data teaches us that in five years, gas will be 5.50/5.60/5.70 per
> gal
>
> Always ten cents between grades. Not a percentage, just ten cents.
> (shrug) Very interesting.....
>
> John
>