Premium Petrol, Is It Worth It? Probably Not! | Canstar Reveals Why

Getting your head around petrol can be confusing. There’s plenty to consider. Petrol retailers often have their own brand names for the fuel they sell, and petrol itself is available, generally, in four types: 91, 95, 98 and e10. So with that in mind, what’s the best petrol for your tank?

What kinds of petrol are there?

The numbers are the most relevant. Standard unleaded petrol is 91. This is sort of the stock standard for many cars. Premium unleaded is both 95 and 98. The ethanol-blended e10 (a mixture of up to 10% ethanol in petrol) is a fuel that can be used as a substitute for 91 in most cars.

Those numbers – 91, 95 and 98 – encompass the octane rating of the fuel. They’re all about the same in terms of the energy in the fuel. Really octane is a measure of how much heat and pressure a fuel can withstand before igniting. 

Manufacturers design engines for a minimum octane rating. If you open the fuel flap of your car and it says “unleaded petrol only” it means 91 octane fuel is okay to use. If it says “premium unleaded only” it means you need to use at least 95. And if the fuel flap tells you to use 98, you use 98.


Car Insurance | Most Satisfied Customers

Looking for the best car insurance? The grid below reveals some of the best New Zealand car insurance providers as voted by their customers, including State, the five-star winner of our prestigious award for Most Satisfied Customers | Car Insurance.


Insurance Brand
Overall Satisfaction
Value for Money
Cost
More Info


AA insurance logo


NZI Car Insurance


See here for our ratings methodology. The table above is an abridged version of our research. For the full results of our 2021 Most Satisfied Car Insurance Ratings and Award, click here.

Compare car insurance


Petrol Pump Handle

Can I put a higher octane fuel in my car?

It won’t hurt your engine if you use a higher octane fuel. For example, if you use 95 or 98 in an engine designed for 91, that’s fine. However, avoid using a lower octane fuel than the minimum recommended by the manufacturer. Using 91 in an engine designed for 95 or 98 is potentially destructive.

High-octane petrol, often labelled premium or supreme, sounds as if it should rank mightily above plain old regular. Fuel retailers say that it improves overall performance and engine efficiency. Retailers aren’t lying, but they do sometimes overstate the benefits. Most engines will adapt very slightly if you run them on a higher octane fuel than the minimum recommended. 

But in practice, the improvement is small, and the price premium of the higher octane fuel always eclipses the economic benefit from running it. In other words, it’s not an economically rational choice to run 98 in an engine designed for 91, even though it might run slightly better. The small increase in fuel economy isn’t enough to overcome the extra cost. A premium tag doesn’t mean the fuel is of better quality either. As all petrol sold in New Zealand has to meet strict quality levels.
petrol v diesel


Searching for the Cheapest Personal Loan?

If you’re looking for the cheapest personal loan, Canstar’s personal loan comparison tables can help. The table below displays the sponsored unsecured personal loan products available on Canstar’s database for a three-year loan of $10,000 in Auckland, with links to lenders’ websites. Use Canstar’s personal loan comparison selector to view a wider range of products on Canstar’s database. Canstar may earn a fee for referrals.


The reality

While it might appear that using a higher octane petrol than specified for your vehicle might unleash some hidden power within your engine, you’re not really doing anything for it. Most cars in NZ are designed to run on 91 octane fuel.

So, just use what your car is designed for and you’ll be fine.

What about e10?

Ethanol is an octane booster and can enhance performance, but the slight negative is there can be around a 3% increase in fuel consumption. It isn’t a substitute for premium unleaded petrol. If your car requires 95 or 98, e10 is not a viable fuel for it. The majority of cars on New Zealand roads designed for 91 petrol can accept e10 – but you should check the owner’s manual or ask the manufacturer or dealer first.

What’s the word on fuel prices?

A Commerce Commission fuel market study conducted last year found motorists are paying more than they should for petrol. The report found companies are making high profits due to a lack of competition in the industry.

Petrol station

Following the report, the government introduced the Fuel Industry Bill. it aims to introduce changes it says will promote greater competition in the fuel market at the wholesale level, ideally leading to lower prices for motorists. Their focus on making changes at the wholesale level are intended to grant smaller players, such as Waitomo and Gull, access to cheaper fuel.

Regulatory changes in the Fuel Industry Bill required a more transparent wholesale pricing regime, and rules to ensure contracts between wholesale fuel suppliers and their customers support competition. As part of this, the three largest companies, Mobil, BP and Z, are now required to publicly advertise the wholesale price of the fuel coming through their terminals.


Car Insurance | Most Satisfied Customers

Looking for the best car insurance? The grid below reveals some of the best New Zealand car insurance providers as voted by their customers, including State, the five-star winner of our prestigious award for Most Satisfied Customers | Car Insurance.


Insurance Brand
Overall Satisfaction
Value for Money
Cost
More Info


AA insurance logo


NZI Car Insurance


See here for our ratings methodology. The table above is an abridged version of our research. For the full results of our 2021 Most Satisfied Car Insurance Ratings and Award, click here.

Compare car insurance


About the author of this page

Nicole BarrattThis report was written by Canstar’s Content Producer, Nicole Barratt. Nicole started her career in news journalism, working for one of New Zealand’s leading newspapers. Post her news stint, she freelanced for outlets including The Sunday Star Times and NZ Life & Leisure Magazine. More recently, she’s applied her research and writing skills to the world of finance for Canstar.


Enjoy reading this article?

You can like us on Facebook and get social, or sign up to receive more news like this straight to your inbox.

By subscribing you agree to the Canstar Privacy Policy

 

Share this article