Shell to Withdraw its 92-Octane Fuel to Meet Growing Customers’ Demands for Higher-Octane Grades

SINGAPORE, 25 MAY 2009 – Shell announced today that it would be phasing out its Shell Formula 92 petrol progressively across its network of stations island-wide.  This exercise, which will be completed by the end of June 2009, will enable Shell to meet the growing demand from motorists for higher-octane main grade fuels, such as Shell Formula 95 and Shell Formula 98.  Motorists are also expected to benefit from greater fuel efficiencies with this move.

Henry Chu, General Manager, Retail Sales & Operations for Shell Eastern Petroleum (Pte) Ltd, commented, “We recognise motorists’ demand for quality fuel and savings, especially in the current economic situation.  While we have seen many trading downwards from a higher-octane fuel to the next lower grade, this is not the case for 92-octane fuel.  Demand for 92-octane fuel has remained flat at five per cent of Shell’s total fuel volume.  This figure has remained constant even when oil price was at its peak of almost US$147 per barrel last year.  On the other hand, demand for our 95-octane and 98-octane main grade fuels has been growing.”

He added, “There is also a misconception that the lowest-priced grade of unleaded petrol, that is 92-octane fuel, is the most economical.  That is not necessarily the case.  Shell’s research and other studies* have confirmed that adaptive engine management systems found in modern cars, such as knock sensors, lead to better fuel efficiency when higher-octane fuels are used.”

A research paper published by the Society of Automotive Engineers in 2006, “The Impact of Gasoline Octane on Fuel Economy in Modern Vehicles”, investigated and compared 91-octane and 95-octane fuels with respect to fuel efficiency.  The results showed that higher-octane fuels led to better fuel economy in all tested cars and in three different driving cycles.  Fuel economy benefits varied from 0.9 to 4.3 per cent when switching from 91-octane to 95-octane fuel.

Demand for Shell Formula 92-octane fuel in Singapore has been consistently low for several years. Globally, several countries have already phased out 92-octane fuel to better support modern car engines that are designed for fuels of minimum 95-octane level.  These include Hong Kong (with a government mandate for minimum 95-octane fuel) and Germany (2008).

 
Henry Chu said, “Shell aspires to help motorists save 10 per cent or more fuel while driving, through the use of Shell fuels with its Fuel Economy formula, together with Shell FuelSave tips.  We believe our customers will appreciate our overall offerings with these fuel-saving initiatives and our unique promotional tie ups with our various partners.”

In a 2009 survey conducted by Shell on Singapore motorists’ driving habits, it found that three times as many Singapore motorists are now conscious about their fuel efficiency compared to two years before.  Eighty-three per cent were then willing to change their driving habits to save fuel, and over nine in 10 welcome more fuel-saving advice.

Shell has responded with a year-long programme to help drives get the most out of every drop of fuel they pump.  It recently announced that local personality Eunice Olsen has been appointed as its FuelSave Ambassador to help Singapore motorists save on their fuel usage.  Olsen launched last week in Germany an initiative to reward 100,000 drivers globally for learning how to save fuel for life.  More information is available at www.shell.com.sg/everydrop.

Notes for Editors

Shell is the world’s largest fuels retailer with about 45,000 retail stations in over 90 countries.  Shell has over 100 years of experience developing the technology and services that make it a leading provider of innovative new fuels today.  In the 1920s, Shell introduced Shell Dynamin, a fuel that offered some of the most advanced engine efficiency of its time.  In the 1950s, Shell fuel included a proven mileage ingredient.

In 2006, Shell launched Shell Unleaded with Fuel Economy formula and set a Guinness World Record for fuel economy by helping a couple from Australia, John and Helen Taylor, to circumnavigate the globe using only 24 tanks of Shell Unleaded with Fuel Economy formula.  In 2007, Shell added to its fuel economy product offerings with the launch of new and improved Shell Diesel with Fuel Economy formula.  2007 also saw the release of the Shell Global Fuel Economy Report, which revealed the thoughts of 3,300 people across 11 countries, showing people’s awareness of fuel economy.  This research led to the development of the Shell FuelSave Challenge, through which Shell trained over 2,000 drivers around the world in fuel efficiency, with two in three of them saving fuel, and the best performers saving up to 24 per cent.

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* Published by SAE in 2006, “The Impact of Gasoline Octane on Fuel Economy in Modern Vehicles” showed fuel economy benefits of up to 4.3% for a 95-octane gasoline over a 91-octane fuel when tested in a variety of cars and driving cycles.

FOR ENQUIRIES:
Oh Yam Chew (Mr)
External Affairs & Communications
Shell Companies in Singapore
Tel.: +65 6384 8943/ +65 9764 0193
E-mail:  yam-chew.oh@shell.com