1925 1926 1927 1928 1929 1930 1931 1932

FIGURE 45.—Trend of the proportion of natural-gasoline content in motor
fuel, 1925-32.
538 MINERALS YEARBOOK

larly during the winter. These lower-pressure products are marketed as premium
gasolines and are likewise suitable for aviation gasolines.
 Prices of natural gasoline in relation to refinery gasoline also have been
conducive to selling direct to jobbers. Analysis of the marketing situation
during the past few years indicates that whenever the price of natural gasoline
falls materially below tank-car prices of motor fuel there has been a tendency
to find direct retail outlets. In marketing through retail channels natural-gasoline
manufacturers enter into direct competition with the refiners, and the availability
of cheap natural gasoline has been an unfavorable influence on the price
structure of motor fuel.
 The success of natural-gasoline manufacturers in reducing manufacturing
costs has given them an economic advantage to compete with refiners in the
retail market. Available data indicate that the average cost of manufacturing
refinery gasoline is higher than that of natural gasoline. A factor in the
cost of manufacturing natural gasoline is the degree of stabilization. For
example, in reducing the
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vapor pressure of the normal 26-70 grade to the desired range for motor fuel
by removing the more volatile fractions, recovery is reduced 30 percent,
thereby increasing the cost of manufacture. Despite this sacrifice in yield,
manufacturers can produce and stabilize grades of natural gasoline at a cost
below the refiners' cost of producing motor fuel.
 An analysis of prices in the Mid-Continent over a period of years shows
that generally the price of natural gasoline fluctuated closely with the
price of refinery gasoline, a conformance in the trend that did not prevail
in 1932. Although the price of refinery gasoline was advancing during the
first 6 months, natural-gasoline prices changed only slightly, and during
the last half of the year natural-gasoline prices strengthened perceptibly
while refinery-gasoline prices trended downward. During May, June, and July
a differential of approximately 2 cents per gallon between the price of refinery
gasoline and ithe 26-70 grade of nai~ural gasolii~e was the largest in recent
years,