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With too low on octane, your engine becomes susceptible to pre-ignition (knock). The ECU detects this and downgrades performance to correct the situation. If you want full performance, use the higher octane.
In general terms, higher octane doesn't ignite prematurely during the compression stroke in high-compression engines. (Some say it's slower burning, but there's plenty of technical info indicating that it's not.)
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David (98 S70 T5SE Black, misc mods (mostly lighting), red calipers) (92 940GLE)
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