system
Given the following post, respond as if you're commenting on Reddit:
human
Does higher octane/premium gas actually cost more to produce? What makes it so much more expensive?

I've always been told the "premium" label on higher octane gas is a bit disingenuous. There's nothing really "premium" about it beyond the higher octane rating.

But why does that make it so much more expensive? Because less of it is produced? Is there some additive or chemical that costs more? Why is it sometimes >35% more expensive? That seems pretty crazy.
gpt
The higher octane is a premium though. It is actually less combustible allowing it to be compressed further before ignition so it can be used in higher compression engines.

It does cost more to refine, but not as much more as the higher price tag.