June 27th, 2008

Numbat

21 of 30 - Grading Petroleum

At least here in the United States, gasoline is always sold as "Regular" "[something I can't remember]" and "Premium." It is always sold in increments of 10 cents -- back when Regular was $1.00, Midgrade would be $1.10 (/gallon) and Premium $1.20 (all prices plus 9 tenths of a cent actually because gas stations are sheisty like that). When Regular was $2.00, Mid would be $2.10 and Premium $2.20 ... and at present here Regular is $4.62, Mid $4.72, and Premium $4.82, on average in the LA area.

When Regular was a dollar, I'd have assumed Mid cost 10% more to produce/provide, and Premium 20% more, hence the price. This seems like a logical deduction to me. But by that logic, Premium should presently be $5.54, not $4.82. At the latter price its now only 4% more expensive than Regular.

So whats the deal with the different grades?

Also, who buys the Midgrade (and btw its not called "Midgrade" at the pumps. I can't remember what its actually usually called around here). It would seem to me most people buy the Regular because its cheapest and there's not generally believed to be a worthwhile difference. However, I know some people want the best of everything, so they'll buy the premium for their gold plated hummer H3s. But who thinks "I want a little better, but I'm only gonna go 2% better, 4% better is just gratuitous!" ?? It seems to me there'd be no market for the midgrade.


Picture of the Day Yesterday

Indiana, Illinois, Nebraska and Wyoming!!

Thats a year ago yesterday actually. Year ago this day was actually Yellowstone, for which I have piles of awesome pictures, but I'm still entertaining the fanciful idea I'll post entries more than once a day and catch up (and so will have an entry to devote to that).


Also, don't believe his filthy lies, emosnail IS the sockpuppet of THIS lj, not vice versa!