Lower octane fuel gaining market share in Singapore

Motorists are steering away from high-octane fuels, either because of cost or because their cars do not need them. Data from the Department of Statistics show that the sale of 92-octane and 95-octane petrol has continued to grow in popularity over the premium 98 grade. In the first half of the year, the market share of “non-premium” grades (92-octane and 95-octane) stood at 65.5%, compared to 56.6 % in 2007, 43.4% in 2005 and 20% before 2000.
This trend has developed, market watchers say, as a result of rising pump prices, as well as a growing awareness that most cars are built to run on a variety of petrol grades, including 92-octane. Cost could be a strong factor for the shift, since lower-octane fuels are cheaper than the premium grades by as much as 19%.
Based on the average annual mileage of about 20,000 kilometers (12,427 miles), and a fuel economy of 10 km a liter (23.5 mpg), vehicle owners can save around US$300 a year if they switch from 98-octane to 92-octane.
Industry experts say that only certain types of vehicles require high-octane fuels. Greg Engeler, Chevron’s regional manager of product engineering, said: “Often, older, worn or heavily carbonized engines will need higher octane… Turbocharged engines also tend to require higher octanes. The higher a fuel’s octane number, the better it is able to prevent knocking–the pre-ignition of fuel in the engine–which leads to lower efficiency. In any case, cars are unlikely to knock in the course of normal city driving.” He said it is best to refer to a car’s manual to determine which grade of fuel to use. (September 17, 2012)