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Originally Posted by Redjake
High octane gasoline will most definitely increase power. It's usually only at the "power band" or "peak power RPM" in engines. For example, a Dodge SRT-4 with the Stage 3 Turbo kit produces around 310 horsepower with 93 Octane gasoline, but if higher octane gasoline (over 100) is used, it boosts the horsepower to 350.
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Higher octane fuel does not directly net you any more power. What it does do is allow you to tune the engine more aggresively. In the case of the stage 3 kit for the SRT-4, it comes with 2 tunes. One requires 93 octane and the other requires 100 octane. You put 100 in and run the 93 tune, you won't see any gain. Put 93 octan in and run the 100 tune, you get to see how big of a hole a connecting rod makes in the engine block when it blows apart.
Another example being my Cobra. I had it retuned from the 91 octane factory tune to an aggresive 93 octane tune and I netted close to 20 rear wheel hp.
With the 3-valve Mustangs GT's if you up the tune to use 93 octane you will gain about 30-35 hp on average.