The following commentary by FTCR President Jamie Court was broadcast
on the Marketplace Morning Report radio program on NPR on Tuesday,
February 21st, 20006. Click here to listen to the audio of the commentary.
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BRIAN WATT, anchor: This is MARKETPLACE. I’m Brian Watt, and I’ve been
known to use certain strategies to save a few pennies at the gas pump.
I’m not the guy who drives miles out of his way to save 3 cents a
gallon, but I know which stations on my routes have the best prices.
And you’ll never catch me buying anything but the least expensive
stuff. Commentator Jamie Court says I’ve got the right idea.
JAMIE COURT (FTCR): You should be thinking about buying the
cheapest gas all year long, no matter what gas prices are doing. Of
course, when gas prices go up, it seems like you see more ads
advertising the special quality of the big oil companies’ premium
offerings. For those of us not driving a Ferrari, these claims are just
malarkey.
Oil companies want you to believe all gasoline isn’t created
equal, so if you want to keep your car from making nasty knocks and
make sure it really gets the mileage it can, then flip for the extra 15
or 20 cents per gallon for premium.
Shell says its V-power premium gasoline is its most advanced
formula ever, and cleans your engine like taking the gunk out of a
dirty oven. Chevron claims if you want to keep those deposits from
building up in your combustion chamber and run at maximum performance,
then buy its Techron Supreme, even if your car’s handbook doesn’t
recommend premium.
Well, experts for the AAA to the Federal Trade Commission will
tell you that’s cow pie. If you’re buying higher octane fuel and your
car’s handbook doesn’t recommend it, you can stop paying through the
nose. We’re not talking rocket fuel here, or rocket science. Gas
companies market more expensive higher octane gas like it’s a cure for
your car’s cancer.
The truth is, unless you’re driving a higher performance car,
or an old muscle car of the past, gas is gas. Oil companies’ marketing
claims over the need for higher octane fuel used to be ever bigger
hooey. The Federal trade Commission stepped in the 1990s to force
fairer representations. With oil companies now recording record
profits, they have even more money to make bigger marketing boasts. But
the truth is no different: Buy the cheapest gasoline you can find
unless your automaker tells you otherwise.
If you hear knocking, you may want to buy a higher octane
fuel. But most cars today are equipped with sensors that prevent
knocking. The EPA already requires detergents in all gasoline, so if
you’re buying a more expensive gas for its motor-cleansing properties
you could be throwing your money away.
Even in cases where the manufacturer recommends, but does not
require premium, there may not be a true need. Motorists should pin
their automakers down. With the recent jumps at the pump, paying an
extra dime or two per gallon for premium when you don’t have to is like
adding larceny to extortion.
Remember, the only difference between premium and regular for most of us is the price.
WATT: Jamie Court is the author of the book "Corporateering" and
runs http://www.consumerwatchdog.org. In Los Angeles I’m Brian Watt. Thanks
for listening.
