The gas station is tricking you...
When you choose what to buy at the pump, "premium" usually means "better." But if you make that assumption at the gas station, you're throwing away your money.
At the same time, you could be missing the chance to protect your car's engine at every fill-up – for almost no money at all.
Between inflation and the global energy crunch, just about everyone is feeling the sting of higher gas prices. So today, we're going to explain how to make your gas budget count by putting the right gas in your tank.
Here's what we mean...
As we write, regular gasoline costs an average of $4.49 per gallon, according to AAA. Mid-grade gas averages $4.97. And premium is $5.35.
Many people think of grades of gasoline as "OK," "better," and "best." That's a trap. In reality, these grades are determined by octane levels – typically 87 (regular), 89 (mid-grade), and 91 to 94 (premium).
Higher-octane fuel can withstand higher fuel compression. A high-compression engine can squeeze out more power, so you'll often find one in a luxury car or sports car.
In a high-compression engine, lower-octane fuel can ignite prematurely. This creates a "knocking" effect that can damage the engine.
But most cars aren't engineered for extreme fuel compression. If you feed them "premium" gas, they won't burn it any differently from "regular."
Say you drive 15,000 miles a year in a car that averages 30 miles per gallon. You'd buy 500 gallons of gasoline per year. With regular fuel, you'd pay $2,245 per year... With premium, you'd spend $2,675. If your car doesn't need premium, you'd be wasting $430 every year.
Your owner's manual will tell you what fuel type your car needs.
Now, some cars fall into a middle ground... in which premium fuel is "recommended" but not "required." This means the cars are engineered to run fine on regular, just at reduced power.
If your car "recommends" premium fuel, go ahead and experiment with regular. If you feel any difference at all, you can decide if what you've experienced is worth the extra cost to you. Maybe even throw mid-grade into the experiment.
'Top Tier' Gas Can Make a Big Difference for Your Engine
Now let's talk about something unrelated to octane levels... Unlike "regular" versus "premium" fuel, this really is better gasoline. And whether you have a 15-year-old Hyundai or a brand-new BMW, you should be putting it into your gas tank.
It's called Top Tier gas.
Top Tier gas has additives that clean carbon deposits out of your engine.
This may sound like a gimmick. But a group of major automakers helped develop Top Tier gas to protect their cars' engines.
In a 2016 study, AAA tested the same engine with two types of gasoline. It found that over 4,000 miles of driving, Top Tier gasoline averaged 19 times fewer deposits on the engine's intake valves.
This carbon buildup can reduce your fuel economy and even damage the engine over time.
Dozens of gas-station chains sell Top Tier fuel. These include most of the big names like BP, Chevron, Exxon, Shell, and Texaco... plus some other stores that also sell gas, like Costco and Meijer (but it does depend on your country). You can find a full list on the Top Tier program's website.
When you gas up at a Top Tier station, you don't have to hunt for a special "Top Tier" pump. It's included in all the station's gas, and at all the octane levels – regular, mid-grade, and premium.
But some popular brands don't sell Top Tier gas. For example, you can't get Top Tier at 7-Eleven, Safeway, Sam's Club, Sheetz, Walmart, or Wawa.
Their gas still meets minimum federal standards... But it's not certified to give your engine extra protection.
Top Tier gas is usually a much cheaper upgrade than premium fuel. Even if the cheapest station in town doesn't sell Top Tier gas, you'd likely just spend a few cents extra per gallon on the Top Tier station across the street.
And for most cars, it makes a much bigger difference.
It's easy to think of gasoline as interchangeable. It's tempting to buy it at whatever station is cheapest or sells the best sandwiches. But the next time you fill your tank, try for Top Tier gas.
My team has collected more automotive advice into two special reports for Retirement Millionaire subscribers... "How to Beat the Auto Market" and "The Retirement Millionaire Car of the Year for 2026." If you're not already a subscriber, click here to learn about discounted access to my newsletter.
What We're Reading...
- Something different: Turns out inexpensive cars have never been more inexpensive.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
May 28, 2026