FOR RELEASE: MARCH 29, 1991 SURVEY OF GASOLINE DISTRIBUTORS WILL DETERMINE COMPLIANCE WITH OCTANE CERTIFICATION AND POSTING REQUIREMENTS A survey of gasoline distributors has begun to determine whether they are keeping required records and accurately certify- ing gasoline octane ratings, Federal Trade Commission Chairman Janet D. Steiger announced today. The nationwide survey will supplement current FTC enforce- ment efforts by obtaining a systematic overview of compliance with the agency's Octane Posting and Certification Rule. Steiger said the FTC will conduct the survey over a several-year period, initially focusing on gasoline distributors in states that have no octane-testing program and that suspect they may have octane mislabeling problems. The FTC's Octane Rule implements the 1978 Petroleum Market- ing Practices Act, which requires that the octane rating of automotive gasoline be determined at the refiner and then cer- tified through the various levels of distribution to the retail station, where the rating must be posted on the pump. The Octane Rule lists standard procedures for determining, certifying and posting octane ratings of gasoline intended for sale to con- sumers. Under the Rule's recordkeeping requirements, gasoline refiners must retain octane-rating test records for one year, and distributors and retailers must retain certification records for one year. (more) (Octane survey 3/29/91) The General Accounting Office (GAO) has reported that octane misrepresentation or cheating is a problem in some states, particularly in states without routine octane testing programs. In a report last year, the GAO found that octane misrepresenta- tion tends to occur more frequently in premium grade gasolines. Price differences between regular unleaded and premium unleaded gasoline mean that even a small percentage of octane misrepresen- tation results in consumers paying a significant amount for octane they do not receive, according to the report. Chairman Steiger said that accurately posted octane ratings, as required by the Commission's Octane Rule, enable drivers to avoid overbuying octane. "Most cars do not need a high octane gasoline to perform properly," advises Steiger. "Your owner's manual tells what octane level the manufacturer recommends, and buying more octane than your car needs is a waste of money," she says. Industry and government studies show that sales of premium gasoline (octane rating above 90), as a percentage of gasoline sales, exceed the percent of vehicles that require premium. In a report last month, the GAO said, "consumers may be buying more premium gasoline than need be." # # # MEDIA CONTACT: Howard Shapiro, Office of Public Affairs, 202-326-2176 STAFF CONTACT: Elaine D. Kolish, Bureau of Consumer Protection, 202-326-3042 Neil J. Blickman, Bureau of Consumer Protection, 202-326-3038 (octvey)