ExxonMobil, Corning and Toyota have collaborated on an Onboard Separation System (OBS) to improve gasoline engine efficiency and performance. OBS is a membrane based process that separates gasoline into higher and lower octane fractions, allowing optimal use of fuel components based on engine requirements. The novel polymer-ceramic composite monolith membrane has been demonstrated to be stable to E10 gasoline, while typically providing 20% yield of ∼100 RON product when using RUL 92 RON gasoline. The OBS system makes use of wasted exhaust energy to effect the fuel separation and provides a simple and reliable means for managing the separated fuels that has been demonstrated using several generations of dual fuel test vehicles. Potential applications include downsizing to increase fuel economy by ∼10% while maintaining performance, and with turbocharging to improve knock resistance.