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.โ€ He said it is best to refer to a car’s manual to determine which grade of fuel to use. (September 17, 2012)