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What Is Branded And Unbranded Fuel?

By June 13, 2015No Comments

Most of us never really think about the gasoline we pump into our cars and trucks. Whether the fuel is branded or unbranded is not generally a part of the decision making process. However, consumers and retailers should be aware of the differences and the quality of branded and unbranded fuels.

What’s the difference between branded and unbranded fuel?

The difference between branded and unbranded fuel is really rather minor. The fuel is the same, with the exception that branded fuel contains additives. These additives are intended to improve gas mileage, reduce carbon monoxide and increase performance, to name a few. Together, this means that branded fuels tend to cost more, usually 5-15 cents more per gallon than unbranded fuel. And, it’s important to note that many of the different branded fuels you find have only minor differences.

Is branded fuel better quality?

Branded fuel is not necessarily better quality. The government and the EPA have very strict regulations in place regarding ethanol content, lead content, quality, vapor pressure, sulfur content and octane. All fuels are required to meet the same standards before they can be sold to the public. Thus, the only difference between branded and unbranded fuel are the additives that modify the fuel prior to sale to the consumer. For branded fuels, strict brand maintenance standards are in place to ensure consistency to the formula.

Is branded fuel worth the cost?

As a consumer, there are a few things you should consider. Among the first things you should look at is price. Branded fuel costs more and there is very little room for price negotiation. For some businesses this is a difference that can really add up.

However, many consumers perceive branded fuels to be more trustworthy and are often willing to pay a little more for that peace of mind. From a retail perspective, it’s important to consider your customers comfort level in this regard.

If you are not retailing the fuel, your best bet may be unbranded fuel as it will maximize your profits and help you control your bottom line.  Additionally, it is often easier to negotiate prices on unbranded fuel which can further reduce your costs.

Founded in 1951, Kendrick Oil Company proudly provides clients in Texas, New Mexico, Oklahoma, Kansas, Colorado and Louisiana with the highest quality fuel and fuel services for their farms, vehicles, and businesses. To learn how we can meet your needs, we invite you to contact us by calling (800) 299-3991. Feel free to send us an email on our Contact Us page.