The office of California Governor Gavin Newsom has a pithy “pro tip” for saving money at the pump: “AVOID Chevron.”
In a pre-Memorial Day X post, Newsom’s office explained that, “Unbranded gas comes from the same refineries, storage tanks, and pipelines, and it meets the same state standards to keep your engine running clean, even if it doesn’t have a fancy name like ‘Techron.’”
At the bottom of the post are two images from different areas of California, each with the current price per gallon of a Chevron station versus a generic gas station. While the Chevron stations had prices between $6.39 and $6.49 per gallon, the non-brand competitors were just shy of $5.80 per gallon.
Overall, California has the highest gas prices in the country at $6.13 per gallon versus the national average of $4.55, according to AAA.
Newsom’s office concluded its politically tinged PSA arguing that, “Big Oil is already making billions off Trump’s Iran War; don’t let them rip you off even more by overpaying for the brand name.”
The social media diss against Chevron is part of an ongoing battle with the Big Oil company. For instance, as AP News reported, California-area Chevron stations recently posted signs reading, “California politicians are choosing foreign oil and fuels over local jobs and lower costs.”
When asked about these signs, Chevron spokesman Ross Allen told AP News that they were part of a “consumer education” program dating back three years to inform Californians about their energy situation.
And just a few months ago, Chevron president Andy Walz threatened to leave the Golden State, telling Bloomberg that if Sacramento lawmakers didn’t “abandon the tax on refineries,” then “they won’t have any refineries in 10 years.”
Data from the California Energy Commission shows that losing Chevron refineries would put a massive strain on local supply. Chevron’s El Segundo Refinery handles 18.14% of California’s crude oil capacity, while the Richmond Refinery processes another 16.54%.
The facts on fancier fuel
While Newsom’s office has a point that California’s gasoline ultimately comes from the same refineries and pipelines, that doesn’t mean paying up at the pump is always a bad idea.
It may save you a few dollars in the short term, but research from a new AAA study shows there’s real long-term value to splurging on Top Tier gas.
Introduced in 2004, Top Tier gasoline is a specific type of fuel that contains higher levels of detergent additives intended to keep engines cleaner and reduce carbon buildup. The program was created by major automakers like GM and Toyota, and brands that meet this standard must pass stricter performance requirements than the minimum EPA gasoline regulations.
Although consumers might be skeptical, AAA showed this is far from a marketing ploy. The engines they tested using non-Top Tier gas brands had 19 times more engine deposits than those with Top Tier after 4,000 miles.
The data was so compelling that AAA now “urges drivers to reconsider their priorities when selecting a gas station.”
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Is Top Tier worth your top dollar?
Interestingly, AAA survey results show that two-thirds of U.S. drivers agree that fuel quality varies between gas stations. But that belief isn’t enough to take action for most.
The same AAA survey revealed that just 12% of respondents choose a gas station based on whether it offers cleaner options like Top Tier. This data also found that 47% of drivers aren’t regularly buying gasoline with enhanced detergent additives.
Instead, customers seem most concerned with immediate cost and convenience, with three-quarters of drivers saying they choose a gas station because of its lower prices or close location.
Although upgrading to Top Tier gas costs more, the increase might not be as extreme as you think. AAA’s data suggests the average premium you’ll pay on Top Tier gas is about 3 cents per gallon.
And even if you’re just transitioning to Top Tier gas, you might notice benefits in your car’s performance. AAA’s director of Automotive Engineering, Greg Brannon, says, “After a few thousand miles with Top Tier gasoline, performance issues like rough idling or hesitation during acceleration can often be resolved.”
Granted, this isn’t the “cheapest” way to get around, but science clearly says it’s not a “rip off.”
If you’d like to run the numbers on Top Tier gas, there’s an official Top Tier Finder app you could download for help finding this fuel in your area.
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Eric Esposito is a freelance contributor on MoneyWise who loves making financial topics accessible and understandable to readers. In addition to MoneyWise, Eric’s work can be found in publications such as WallStreetZen and CoinDesk.
