The price difference between Euro 98 (E5) and Euro 95 (E10) gasoline at the pump can be significant. This difference is caused by various factors related to their composition, production processes, market dynamics, and regulations. Here’s a detailed explanation of why a liter of Euro 98 (E5) is usually considerably more expensive than Euro 95 (E10).

    1. Higher Octane Rating

    The primary reason for the higher cost of Euro 98 (E5) gasoline is its higher octane rating. The octane rating measures the ability of a fuel to resist knocking or pinging during combustion, caused by the premature detonation of the air-fuel mixture in the engine. Euro 98 (E5) has an octane rating of 98, compared to 95 for Euro 95 (E10). Fuels with a higher octane rating, such as Euro 98 (E5), are less likely to knock in high-performance engines, which can improve the efficiency and lifespan of the engine.

    2. Production and Refining Costs

    Producing fuels with a higher octane rating, like Euro 98 (E5), is more complex and expensive. The refining process to achieve a higher octane rating requires more advanced technology and extensive processing steps. This includes blending with higher quality components and sometimes using additional additives to boost the octane rating. These extra steps and materials increase production costs, which are passed on to the consumer.

    3. Additives and Quality

    Euro 98 (E5) often contains more or higher quality additives than Euro 95 (E10). These additives can enhance engine performance, reduce emissions, and improve fuel stability. The improved composition of Euro 98 (E5) contributes to the higher price, as the cost of these additives is included in the final product price.

    4. Market Dynamics and Demand

    The demand for Euro 98 (E5) is generally lower than for Euro 95 (E10), leading to different pricing strategies. Since fewer cars benefit from or significantly gain from fuel with a higher octane rating, the volume sold is smaller. This means that the fixed costs of production and distribution must be spread over fewer liters, resulting in a higher price per liter. Conversely, Euro 95 (E10), being the most commonly used fuel, benefits from economies of scale, which can help keep the price lower.

    5. Environmental and Regulatory Factors

    Regulatory standards and environmental policies can also influence fuel prices. Fuels with a higher octane rating, such as Euro 98 (E5), may be subject to different regulations regarding their composition and the types of additives used. Compliance with these regulations can increase production costs. Additionally, fuels with a higher octane rating can contribute to lower emissions and better engine performance, which can justify their higher price.

    Conclusion

    The higher price of Euro 98 (E5) gasoline compared to Euro 95 (E10) is mainly due to its higher octane rating, more complex production processes, extra and higher quality additives, market dynamics, and regulatory factors. While Euro 95 (E10) is sufficient for most vehicles, Euro 98 (E5) offers benefits for high-performance engines and can contribute to better engine health and efficiency, which justifies the higher costs for those who need or prefer it.

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