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Author Topic: Price difference between grades rising even though cost hasn't Post a Reply Back to Topics
PD

Moderator
Message Posted: Feb 9, 2010 12:50:22 PM

If you only fill up with regular octane gasoline, you may not have noticed what's been happening at some pumps across the nation lately. Some of you who fill your tanks with mid-grade and premium may have seen stations increase the price between higher grades and regular. Traditionally, it's been near 10-cents here in much of the Midwest, but I've noticed more than one chain attempt to charge more lately, even though their diffidence in cost hasn't necessarily risen between regular and higher grades.

As much as I may like Pilot Travel Centers, I've noticed they are a big believer lately in charging customers more that use higher octane fuels. Pilot had traditionally charged 10 cents more for mid-grade and another 10 cents for premium...

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REPLIES (newest first)
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zornave
Champion Author Louisville

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Message Posted: Feb 13, 2010 1:22:12 PM

...because they can
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honda0105
Champion Author Tallahassee

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Message Posted: Feb 11, 2010 9:13:19 PM

that's because high end car manufacturers recommend the more expensive fuel - most are large gas guzzlers, so why no increase the price on the fuel? After all, greed runs deep in Pig Oil land.
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traindude
Champion Author Virginia Beach

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Message Posted: Feb 10, 2010 9:35:27 PM

still traditional 'round here
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TJC47
Champion Author Indianapolis

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Message Posted: Feb 10, 2010 9:09:34 PM

It's a scam!
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OHMS
Champion Author Orange County

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Message Posted: Feb 10, 2010 2:32:16 PM

Shane1936 YOU'VE BEEN A MEMBER FIVE YEARS; YOU'VE MADE 13 POSTS; AND you spend several hours each week looking for intelligent folks? CASE CLOSED.

DIVE SAFE NOW; YAHERE

OHMS

Offering Homilies Mostly Sarcastic
Rookie Author Atlanta

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Message Posted: Feb 10, 2010 10:31:57 AM Ignore Shane1936 Report Abuse
Gas Buddy;

Great post! I spend several hours a week going through the postings just to see if there are any intelligent folks posting; don't see very many. Most seem to have very little knowledge about the subjects they are so quick to respond to!

Thanks,,,,

[Edited by: OHMS at 2/10/2010 3:32:58 PM EST]
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FuelBarge
Champion Author Long Island

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Message Posted: Feb 10, 2010 12:48:38 PM

I recall back in 1990 before Hussein invaded Kuwait that premium gasoline tended sell for about $.08/gallon more than regular. I usually sprang for the high grade as it made my 1988 CRX's engine run a bit smoother. After the invasion, prices skyrocketed and the price differential here in the NYC area has been $.20+/gallon since then. The last time I filled with premium was in November 2008 when it was selling for about $1.89/gallon and I figured "what the heck".
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hank1326
Champion Author Los Angeles

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Message Posted: Feb 10, 2010 12:45:32 PM

My wife is on Regular, I buy Premium due per manufactory specifications.
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rissa2182
Rookie Author St. Louis

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Message Posted: Feb 10, 2010 12:36:24 PM

someone i know was told he should only use the premium grade fuel and b4 he knew it, his car was shaking and could barely pick up speed. when he decided to start using regular, he stopped having car trouble. i think in some cases, it's just a scam to scare a person into paying more. they like to make people believe that it will ruin their vehicles if they use the cheaper stuff.
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CLM06
Champion Author Tampa

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Message Posted: Feb 10, 2010 12:32:45 PM

Used to be 10 cents for each grade increase but now it's more like 15 cents per grade increase
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lgwhitlock
Champion Author Chico

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Message Posted: Feb 10, 2010 12:32:03 PM

The only time I notice big differences is when prices are extremely volatile and changing quite often...
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Shane1936
Veteran Author Atlanta

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Message Posted: Feb 10, 2010 12:31:57 PM

Gas Buddy;

Great post! I spend several hours a week going through the postings just to see if there are any intelligent folks posting; don't see very many. Most seem to have very little knowledge about the subjects they are so quick to respond to!

Thanks,,,,
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madison8359
Champion Author Cleveland

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Message Posted: Feb 10, 2010 12:26:40 PM

Due to manufacturers recommendation and the performance of the engine I am forced to purchase premium.

It usually costs about .20 a gallon more than regular and that is still the case at most filling stations.
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Cakes77
Champion Author Harrisburg

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Message Posted: Feb 10, 2010 12:25:22 PM

That's not right.
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egd
Champion Author Twin Cities

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Message Posted: Feb 10, 2010 12:23:38 PM

the net cost difference, what about supply and demand difference, and cost of having addtional sources per pump and tanks
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rowing
Champion Author Macon

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Message Posted: Feb 10, 2010 12:21:50 PM

I buy regular myself
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915Chief
Champion Author San Antonio

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Message Posted: Feb 10, 2010 12:15:56 PM

The bottom line in action....
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carrollcreek
Champion Author Minnesota

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Message Posted: Feb 10, 2010 12:13:31 PM

I agree with Gas_Buddy. I am required to put premium fuel in one of my vehicles and typically it is about 20 cents more then the regular grade. If it cost a penny or two more, then that is life, since I need to use it. Does it work better, on my vehicle it does. If I use regular, then I drop about 3 mpg. I noticed an earlier post where the opposite effect happened. I think that is because cars are tuned differently and you should use what the manufacturer specifies.

With that said, I'm okay with the stations charging a little extra. I try to support my local station (which is in a small town with nothing around it for 10 miles). I realize that they don't make a lot on fuel, so if I need something small for groceries, I go there instead of the main store. And I usually try to buy my fuel there (even if it is more). I don't blame the station owners for the fuel costs, but rather the major oil companies. I want/need a station close by, so I will pay extra to make sure they stay in business.
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CDT206
Veteran Author Atlanta

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Message Posted: Feb 10, 2010 12:10:15 PM

Around here it is usually 15 cents, but I have seen it as much as 45 cents
at some stations.
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slgas
Champion Author Houston

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Message Posted: Feb 10, 2010 12:09:01 PM

One station here is currently posting an 11 cent gap, but just about all are at 15 cents.
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arvo87
Champion Author New Mexico

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Message Posted: Feb 10, 2010 12:07:38 PM

Loves charges 10 cents more per grade jump and is usually one of the lowest prices in my area
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bby
Champion Author Twin Cities

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Message Posted: Feb 10, 2010 12:05:59 PM

Have seen around 10 to 12 cents difference between grades...
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QueenMother
Champion Author New Hampshire

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Message Posted: Feb 10, 2010 12:04:41 PM

There's usually a 10 cents difference between regular and mid grade.
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Gas_Buddy
Champion Author Maryland

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Message Posted: Feb 10, 2010 11:57:14 AM

Sorry, but I just don't see this as gouging or greed. Assuming some people here work for the government or charitable organizations, I'm sure most of the companies the rest of the people here work for are trying to maximize their profits.

The average mark-up on a gallon of regular gas is 9 to 12 cents per gallon, meaning that if a station sells 40,000 a month, it earns about $4,000 after paying for the fuel. Depending on what it earns from in-store sales, from that $4,000 it must pay salaries, credit card fees, rent, accounting, maintenance, maybe advertising and/or franchise fees, among other operating expenses. And, they need to get a return on their original investment in buying or franchising the gas station.

I don't use premium, and many of the gas stations around here now have less than a ten cent difference between regular and mid-grade, and a dime or less difference between mid-grade and premium.

I don't begrudge a gas station for trying to make a couple more cents per gallon for premium. After all, if people here have no compulsion about a cup of Starbucks coffee for $2.50 or $3.00 a day, or a couple cups, and they don't mind spending more buying more car than they really need (along with the higher finance charges and insurance), paying for satellite radio, etc., running around with iPods for each child and top of the line laptops for each member of the house, then why shouldn't the gas station operator expect, or at least hope for, a decent living for himself and his employees?

Stations are in direct competition with each other and their prices are clearly marked before you enter the station; if you don't like the price, go to a competitive station and buy your gas. It's not as if you have to buy from the highest priced station, nor is it they're competing to be the higher priced station. They're competing to get your business and, because advertising the price is so blatent, their prices are in competition with each other for your business. Hard to see that as gouging or greed.

And no, I'm not a gas station operator, I have no gas stocks (or any stock for that matter) and I have nothing to do with the gas industry. But it's tiring seeing people here who have no problem wanting more money for their work or service yelling "gouging" on a couple cents profit on gas. Tell me that your company is reducing prices and eliminating profits because the owners have enough money to sell the product at cost and pay salaries, etc., out of their pockets, then we can say gas stations shouldn't operate at a profit.
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lodawg48
Champion Author Columbus

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Message Posted: Feb 10, 2010 9:47:52 AM

Has been 15ยข between grades in northern Delaware for quite awhile now.
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lodawg48
Champion Author Columbus

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Message Posted: Feb 10, 2010 9:20:14 AM

In my Market... WI the "traditional" price gap of 10 cents is still around... however outside of SE WI you can see some wild variation as many stations are offering Ethanol blends for regular and mid-grade (which traditionally might even have cost the same... Reg with no ethanol and Mid with...) with Premium being offered without Ethanol AND costing 15-20 cents more then Mid-Grade.

So it's just a matter of window shopping for the best price. The hard part of that is many stations here are converting to signs that only show Regular Gasoline and Diesel prices and not Mid or High Grades...

So you basically need to do a "drive by" the pump to know the price gap AND which fuels are 10% Ethanol (if any).
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LeeFree
Champion Author Pittsburgh

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Message Posted: Feb 10, 2010 7:04:16 AM

It's been 10 cents between regular and mid-grade; 20 cents between mid-grade and premium for years around this area.
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capt455
Champion Author North Carolina

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Message Posted: Feb 10, 2010 7:04:11 AM

I've noticed, even though I rarely-to-never buy anything other than 87 octane. There was always just a 10 cent gap between each grade until recently. I don't own anything that requires mid or premium. I tried premium once on a 300 mile trip in our '08 Honda Fit, and found about a 3 mpg drop in mileage, so in that case it's not only more expensive but also less efficient.
My old '71 Pontiac Grandville doesn't ping as much with premium, but in a 10 mpg car with a 25 gallon tank, my attitude is "you'll get regular, and LIKE it".
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lodawg48
Champion Author Columbus

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Message Posted: Feb 10, 2010 7:00:57 AM

I have noticed this trend in San Antonio TX. Valero used to get a .10 cent bump to mid grade and another .10 cents for premium. They now charge .14 and .15 respectivly or there abouts. I have be watching this closely since my auto requires premium only.
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rvn4me
Champion Author Texas

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Message Posted: Feb 10, 2010 6:51:27 AM

Around here the price difference is 13- 15 cents.
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Plebe2001
Champion Author Philadelphia

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Message Posted: Feb 10, 2010 6:50:38 AM

Old story from yesterday.
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mk9999
Champion Author Rochester

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Message Posted: Feb 10, 2010 6:50:28 AM

A lot of stations here are trying 12 or even 13 cents more.
They figure if you can afford the expensive car that needs premium gas you can pay the extra cost and not care.
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RoadhogMA
Champion Author Boston

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Message Posted: Feb 10, 2010 6:48:48 AM

ALWAYS BUY LOWER WHEN I CAN .
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arinkrat17
Champion Author Twin Cities

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Message Posted: Feb 10, 2010 6:44:53 AM

robbery
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CaroleMit
Rookie Author St. Louis

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Message Posted: Feb 10, 2010 6:44:33 AM

The difference here is 15 cents.
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dan30thz28
Champion Author New Jersey

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Message Posted: Feb 10, 2010 6:42:13 AM

Hasn't it always be been like that?
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MUSTANGSRUS
Champion Author Ontario

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Message Posted: Feb 10, 2010 6:41:39 AM

Neither my husband nor I like the sound of marbles going down a drain pipe when we put the pedal down, so we use high octane gasoline. The difference in our area is 11 cents a litre or more. Quadruple that to make a U.S. gallon. We are definitely getting ripped off. When a gallon was used in Canada, about 5 litres, the difference used to be about 10 cents a gallon.
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FocusGuy
Champion Author Seattle

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Message Posted: Feb 10, 2010 6:40:54 AM

Free trade. Go somewhere else if you feel you are being "had".
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Bpers2001
All-Star Author Seattle

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Message Posted: Feb 10, 2010 6:40:07 AM

Why am I not surprised? Greed, once again.
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SwampDonkeyME
Veteran Author Maine

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Message Posted: Feb 10, 2010 6:39:59 AM

This is all bs there should be only one grade of gas called gas! You can thank all the tree huggers for this crap!
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jimraehl
Champion Author Utah

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Message Posted: Feb 10, 2010 6:38:55 AM

About a 2-cent increase in differential in Orem, UT. Fortunately, I use regular.
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abuck
Champion Author Pittsburgh

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Message Posted: Feb 10, 2010 6:38:49 AM

The majority of stations around here are 10 cents from reg to mid and 10 from mid to premium. I know of one that does 12 cents from reg to mid and 12 from mid to premium, and two stations that do 10 cents from reg to mid and 20 cents from mid to premium. They charge what the market can handle basically.
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gfpinson
Champion Author Atlanta

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Message Posted: Feb 10, 2010 6:37:35 AM

A couple of stations on South side of Atlanta have gone to +.20 for plus and then another .20 for premium.
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smokinjoe1
Veteran Author Alabama

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Message Posted: Feb 10, 2010 6:37:09 AM

They started that here a year ago. For years it was up ten cents for each grade up.
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Sam195
Champion Author San Bernardino

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Message Posted: Feb 10, 2010 6:36:51 AM

This is an interesting article, and the change in the price spread certainly has shown up in So. Cal. prices. Except for ARCO, which still has a 10 cent difference.
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Rick01
Champion Author Utah

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Message Posted: Feb 10, 2010 6:36:12 AM

If you feel you need a higher octane, try adding 1 oz. of kerosene(class A jet fuel) per 10 gallons of gas. That will give you super unleaded gas at a much cheaper price.
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lucky69
Champion Author Austin

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Message Posted: Feb 10, 2010 6:35:47 AM

They are trying to make more of the high grade that people are using less and less.
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drunkhabib
Champion Author North Carolina

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Message Posted: Feb 10, 2010 6:34:15 AM

most of the cars that use premium are owned by drivers that solely purchase by credit card. Thus, the retailers are charging more because they want to recoup bank fees. I wish they just offered cash discounts instead on all products. Im happy to pay cash if it saves me money and costs those greedy bank hogs something.
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PurduePete86
Champion Author Indiana

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Message Posted: Feb 10, 2010 6:33:52 AM

In SW Michigan Mid Grade and Regular are the same at Marathon stations.
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my3sons
Champion Author New York

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Message Posted: Feb 10, 2010 6:33:36 AM

use the lowest grade recommended by your manufacturer
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RAVEnRAGE
Rookie Author Maine

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Message Posted: Feb 10, 2010 6:33:04 AM

If I try putting regular in my Saab the mpg suffers by up to 3mpg... Plus I'd need to have more work done on my engine more often. You can actually hear and feel the difference when driving it with regular in the tank. I wish I could afford a different car but cash for clunkers killed the cheap used car business up here in Maine. Now almost every good used car (5+ years old) is over 5K.
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