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January 29, 2025

Understanding Different Fuel Grades for Peak Performance

Fuel is more than just a necessity—it’s the backbone of countless industries, from transportation to agriculture.

But here’s the thing: not all fuels are created equal.

The grade of fuel you choose can make or break your operations, influencing everything from engine performance and costs to overall efficiency.

Most fleet managers have different preferences on what they want to run through their vehicles or other pieces of equipment,” says Luke Krueger, Director of Sales for the Northern ROC at Farstad Oil. Selecting the correct fuel grade is not just a technical decision—it’s a strategic move that ensures optimal operation, reduces downtime, and maximizes return on investment.”

In this guide, we’ll take a deep dive into the world of fuel grades, breaking down what makes them unique, their ideal applications, and how selecting the right one can drive better results for your business.

Ready to fuel your knowledge? Let’s get started!

Fuel Grades 101

Fuel grades are basically classifications based on specific properties that influence performance. For gasoline, the octane rating indicates how well the fuel resists knocking during combustion. Higher octane fuels are often used in high-compression engines to ensure smooth and efficient operation. For diesel, the cetane number measures ignition quality—higher cetane numbers mean quicker and more efficient combustion.

“Typically, the higher octane you run, the better mileage you get out of your gasoline or diesel fuel,” says Krueger. “In that case, operators need to weigh the difference between price versus mileage. I would say that with a higher-octane gasoline and diesel fuel, you’re getting better performance out of your engine.”

Fuel grades are determined during refining, where crude oil is processed into various products. Regulatory standards ensure consistency and quality, protecting engines and meeting environmental guidelines. Understanding these grades is key to choosing the right fuel for your needs.

Gasoline Grades: What’s Under the Hood?

The grade of gasoline you choose directly impacts engine performance, fuel efficiency, and the overall longevity of your fleet. Here’s a closer look at the different gasoline grades and their specific applications:

1.   Regular (87 Octane)

This is your everyday workhorse. Krueger estimates that over 85 percent of Farstad’s gasoline sales are regular fuel, with an octane rating of 87. Regular grade is suitable for most vehicles with standard engine designs. Its lower pricing makes it cost-effective and reliable, making it the default choice for many drivers.

2.   Mid-Grade (89 Octane)

Mid-grade fuel offers slightly higher-octane levels, providing better performance for engines requiring moderate compression. It’s an excellent choice for vehicles occasionally needing extra power or efficiency.

3.   Premium (91-94 Octane)

Premium gasoline is designed for high-performance and luxury vehicles with advanced engine designs. Its higher-octane rating prevents knocking, enhances fuel economy, and delivers smoother performance.

Well, premium gasoline is refined a little further,” Krueger says. “It’s cleaner; it’s got a higher octane. And it typically has an additive package in it too. Basically, they’re adding a little bit of injector cleaner into their gasoline, which, when added to the higher-octane rating, creates premium top-tier gasoline.”

For fleet managers, investing in premium fuel may benefit specific vehicles requiring top-tier performance.

Diesel Grades: Powering Heavy-Duty Operations

1.   Standard Diesel (#2 Diesel)

The backbone of most diesel-powered fleets, #2 diesel is reliable and efficient for everyday operations. It provides the energy density needed for long hauls and heavy-duty machinery.

“Diesel fuel is a little bit different in that you’ve got your basic #2 fuel, you’ve got your #1 fuel, and you have a blend of each, depending on climate and customer preference.  Beyond that, you’re talking about additive packages for your fuel to create a “Premium Grade”, according to Krueger.

Number one diesel is not great fuel. You wouldn’t run it directly in a vehicle. Its primary advantage is that it doesn’t gel at low temperatures.

All diesel fuel has a certain amount of wax in it.  #2Diesel has a much higher level of wax in it than #1Diesel, and in cold temperatures, that wax—which typically is suspended in your fuel—tends to drop out of the fuel, collecting at the bottom of the tank. When that wax drops out and gets pulled through the fuel pump, it ends up collecting in the fuel filter, halting the transfer of fuel through that filter, ultimately killing the engine.

“#1Diesel, on the other hand, has very little wax in it,” says Krueger. “That’s what makes it such an undesirable fuel; it doesn’t have that lubricity in it from the wax that #2Diesel has, so it’s much harder on your engine.”

Typically, you never run #1 Diesel through your vehicle. But you can by blending it with #2 Diesel to lower the level of wax that’s in the fuel, creating winterized fuel.

2.   Winterized Diesel (Blends of #1 and #2)

In colder climates, winterized diesel blends are essential to prevent fuel gelling and ensure smooth engine starts. These blends are formulated to maintain flowability in freezing conditions.

Winterized diesel can be blended at different ratios of #2 diesel to #1 diesel, depending on the temperature.

As the temperature drops, you want that blend to be higher in #1,” says Krueger. “So, on a day where we’re about 10 degrees above zero, your drivers probably could get by with just a blend of 80/20 (80% #2 and 20% #1), or maybe a #2 with a winter additive in it. But when the temperature dips down to -15 to -20, at that point, drivers are going to be blending a 50-50 blend in their truck to make sure that it doesn’t gel up.”

3.   Premium Diesel

Premium diesel contains additives that enhance engine performance, improve fuel efficiency, and reduce wear and tear. It’s an ideal choice for fleets looking to minimize maintenance costs and maximize uptime.

“All refiners have a premium diesel offering that is straight number two with an additive package,” Krueger says, “Including ourselves, Farstad Oil, or Parkland. We have our own additive packages as well that we offer our customers. Our Wintermax and Optimax premium diesel fuel additives are our winter and summer offerings.”

Optimax includes many components, from octane boosters, rust inhibitors, water emulsifiers and demulsifiers, and lubricity agents, to add lubricity to the fuel.

Alternative and Blended Fuels: What to Know

1.   Ethanol Blends (E10, E15, E85): A Renewable Choice

Ethanol-blended fuels offer environmental benefits, reducing greenhouse gas emissions and supporting renewable energy goals. They’re suitable for certain engines and are widely used in light-duty vehicles.

In many states, including Minnesota, ethanol is mandated by governments to be at least 10 percent of any on-road gasoline. At a gas station, you’ll see the designation 87E-10, which shows that the fuel is 10 percent ethanol.

In addition to lowering emissions, ethanol is cheaper to produce, lowering the cost of gasoline for consumers. There is a drawback though; higher ethanol blends, such as the E85—which is 85 percent ethanol—result in poorer gas mileage.

“There is a tradeoff,” says Krueger. “Today’s vehicles are engineered to run with higher levels of ethanol, so it’s cheaper to fill the tank. But you don’t go nearly as far as with an E10 blend.”

2.   Biodiesel Blends (B5, B20): Environmentally Friendly Diesel

Biodiesel blends combine diesel fuel with renewable biodiesel components. These blends are gaining popularity among fleets aiming to reduce their carbon footprint without compromising performance.

Biodiesel is refined from several alternative feed stocks including soybean oil, canola oil, corn, and animal byproducts. It is then blended into #2 diesel at either five percent in the winter or 20 percent in the summer in participating states like Minnesota. Because of its high wax content, it’s not ideal in the winter. It does have a higher cetane value (the equivalent of an octane rating) than traditional diesel, meaning it provides more performance.

“Although it’s a more sensitive product from a climate perspective,” says Krueger, “it certainly has more lubricity to it and has proven to be a very effective diesel fuel.”

How to Choose the Right Fuel Grade for Your Fleet

Fleet managers often face a balancing act when selecting fuel grades.

“Does the fleet manager put more value into the cost savings? Or does he put a higher value on the overall performance of his vehicles,” asks Krueger. “We see different mentalities out there between fleet managers and organizations that we supply products to.”

With numerous factors to consider, here’s a detailed guide to help you make the best choice:

1. Follow Manufacturer Recommendations: Every engine is designed to operate optimally with a specific fuel grade. Whether it’s the octane rating for gasoline engines or the cetane number for diesel engines, adhering to the manufacturer’s guidelines is essential.

Using a lower grade than recommended can cause engine knocking, reduce fuel efficiency, and lead to expensive repairs. For diesel engines, selecting the wrong cetane rating can result in poor ignition and reduced power output.

Always check the vehicle or equipment manual to confirm the recommended fuel grade. If you’re managing a mixed fleet, maintain a record of fuel requirements for each vehicle to avoid costly mistakes.

2. Consider Seasonal Conditions: Climate plays a critical role in fuel performance, particularly for diesel engines, where extreme temperatures can affect fuel flow and ignition. For example, in colder regions, diesel fuel can gel due to the crystallization of wax content, which can clog fuel lines and filters. So, you’d have to use winterized diesel blends that incorporate #1 diesel or additives to lower the fuel’s pour point and prevent gelling. In warmer months, standard #2 diesel provides better energy density and lubricity, optimizing performance.

3. Weigh Performance vs. Cost: Fuel expenses are a significant part of fleet management and choosing between standard and premium fuel grades often comes down to balancing performance needs with budget constraints.

Premium gasoline or diesel grades with additives can improve fuel efficiency, reduce wear and tear, and extend engine life. While the upfront cost is higher, the long-term savings on maintenance and downtime can offset the initial expense.

So, the next question is, when should you prioritize cost? For standard vehicles or equipment that don’t require high-performance fuels, sticking to regular grades can help control operational costs without compromising reliability. A delivery fleet operating in urban areas with frequent stops may benefit from mid-grade or premium fuels for better combustion and reduced engine strain, whereas agricultural equipment used intermittently may not require the same level of fuel quality.

4. Leverage Expertise: Fuel management isn’t a one-size-fits-all process. Collaborating with your suppliers can ensure you’re selecting the best fuel solutions for your fleet’s unique requirements. Make sure to discuss your fleet’s specific challenges—such as extreme weather, diverse vehicle types, or high mileage—with our sales team to receive customized advice and solutions. We can:

Recommend tailored blends or additives based on your fleet’s operating conditions.

Provide insights into regional fuel standards and regulations.

Provide assistance with fuel monitoring systems to optimize consumption and reduce waste.

Offer premium additive packages designed to improve fuel performance. For instance, lubricity enhancers in diesel can reduce engine friction, while rust inhibitors can protect fuel systems from corrosion.

With the right fuel strategy, your fleet can achieve better performance, lower maintenance costs, and longer equipment life—allowing your business to stay ahead in a competitive landscape.

Tips for Fleet Managers: Optimizing Fuel Usage

For fleet managers, choosing the right fuel can simply come down to volumes.

“If you’re a typical fleet of 50 trucks, and you’re going through a million gallons a year of fuel, in a region where temperatures become a factor, you don’t have much of a choice,” says Krueger. “You have to put some thought into amping up your fuels to keep the vehicles running. A happy medium, I would say, is running a straight #2 with no additives in summertime, and then running more of a premium grade diesel fuel in the winter to ensure you’re not gelling. That’s what we probably see most of, but we certainly see both ends of the spectrum.”

Wrapping It Up

Each business is different; your fleets may consist of many different types of vehicles. With our vast experience and excellent fuel-tracking tools, we ensure that your company is making the right trade-offs for performance and profitability.

“We have consultant companies that we refer our customers to if they have technical questions that need to be answered. But ultimately, we provide them with all the expertise we have available to ensure they’re making the best decisions possible when it comes to their fleets, their operation, their distributorship, or whatever it is they do,” says Krueger.

Whether you require transport quantities or bulk delivery, our team is here to guide you in selecting the best fuel options for your operation.

Contact Farstad today and speak with our sales representatives to explore how we can help you fuel your success.