THE BREAKDOWN

• Premium gas prices saw a 5% sales drop during June 2026.
• It's attributed to higher fuel prices from the US-Iran conflict.
• Buyers of luxury and performance cars opted for regular fuel to save money. 

Average cost for a gallon of gas is slowly declining, falling below the $4.00 mark so far in July, according to AAA Fuel Prices. Drivers are still feeling some pain at the pumps, though, and high prices in June led many luxury and performance car owners to skip premium gasoline in favor of cheaper regular gas.

Bloomberg cites data from a cash-back app called Upside, which says premium gasoline sales declined by 5.0 percent between June 22nd and June 25th compared to the average in February. Upside used February for comparison because that is just before the start of the United States strikes on Iran, which led to a surge in oil prices.

While less impacted, mid-grade sales saw a 2.0 percent drop during the same period, while sales for regular gas saw a 10.0 percent spike. "We almost always see premium cannibalized to regular," head of petroleum analysis at GasBuddy, Patrick De Haan, told Bloomberg.

Premium gas (91 octane or above) is required by the manufacturer for many luxury and performance vehicles, and it is not recommended to run a lower octane. It may save drivers money, but it could cause engine knocking and even lasting damage.

Some vehicles only recommend higher octane fuel for peak performance, but do not require it. Certain manufacturers, like Mazda, will even advertise increased horsepower or torque ratings if you use premium gas.

Though automakers don’t say so officially, many luxury versions of vehicles that share an engine with their mainstream counterpart can run on lower-grade fuel at a lower output. Conversely, the mainstream version includes the software that will allow it to deliver more power if an owner puts in premium fuel. Some examples include:

• Nissan Armada: 425 hp and 516 lb-ft of torque
• Infiniti QX80: 450 hp and 516 lb-ft of torque
• Toyota Grand Highlander Hybrid Max: 362 hp and 400 lb-ft
• Lexus RX 500h F Sport Performance: 366 hp and 406 lb-ft

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Motor1's Take: With fuel prices rising, drivers are looking for solutions to save money. Not everyone can trade in their vehicle for something newer, smaller, or more fuel-efficient, but using lower-grade gasoline is an easy option if it's possible for the car you drive.

Read More About Fuel Prices

GM Sees Truck Demand 'Shrinking' Due To High Gas Prices, Just In Time For Its New V8

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