Due to world crude oil price hike in the recent years, many countries have experienced increase in gasoline price. In Malaysia, where gasoline are sold in two grades; RON95 and RON97, and fuel price are regulated by the government, gasoline price have been gradually increased since 2009. Price rise for RON97 is more significant. By 2014, its per liter price is 38% more than that of RON95. This has resulted in escalated dissatisfaction among the mass. People argued they were denied from using a better fuel (RON97). In order to evaluate the claim, there is a need to investigate engine response to these two gasoline grades. The effect of gasoline RON95 and RON97 on performance and exhaust emissions in spark ignition engine was investigated on a representative engine: 1.6L, 4-cylinder Mitsubishi 4G92 engine with CR 11:1. The engine was run at constant speed between 1500 and 3500rpm with 500rpm increment at various part-load conditions. The original engine ECU, a hydraulic dynamometer and control, a combustion analyzer and an exhaust gas analyzer were used to determine engine performance, cylinder pressure and emissions. Results showed that RON95 produced higher engine performance for all part-load conditions within the speed range. RON95 produced on average 4.4% higher brake torque, brake power, brake mean effective pressure as compared to RON97. The difference in engine performance was more significant at higher engine speed and loads. Cylinder pressure and ROHR were evaluated and correlated with engine output. With RON95, the engine produces 2.3% higher fuel conversion efficiency on average but RON97 was advantageous with 2.3% lower brake specific fuel consumption throughout all load condition. In terms of exhaust emissions, RON95 produced 7.7% lower NOx emission but higher CO2, CO and HC emissions by 7.9%, 36.9% and 20.3% respectively. Higher octane rating of gasoline may not necessarily beneficial on engine power, fuel economy and emissions of polluting gases. Even though there is some advantage using RON97 in terms of emission reduction of CO2, CO and HC, the 38% higher price and higher NOx emission is more expensive in the long run. Therefore using RON95 is economically better and environmentally friendlier. The findings provide some techno-economic evaluation on the fuel price debate that surround the Malaysia’s population in the recent years. The increased of fuel price may have limited their ability to use higher octane gasoline but it did not negatively affecting the users as they perceive.