Backed up by something i found on the 106 Rallye forum:
[quote="Slik" from the 106 Rallye Register]Right then where do I start....
Octane as those of you who have chemistry will know is a molecule in itself (8 carbon atoms, 18 hydrogen).
Better fuel for burning has more multi branch molecules as these burn more stabily, and octane with branches I believe is considered the optimum for engines. Though it has been a few years since I have done organic chemistry or petrochemicals.
Octane rating hence determines the way the fuel burns. 95 ron has to have the ignition retarded as it is less predictable and reacts to hot spots in the chamber. Hence with higher octane rating you can run advanced timing and through this you can increase the power level cos you ignite the fuel closer to the top of the stroke, or thereabouts.
I would never use anything under 97 ron for turbo applications as due to the increased compression ratio they are susceptible to predetonation (pinking), usually down to a hot spot in the cylinder combined with the increasesd compression (like diesel petrol is more combustable when compressed). Indeed you will not be advised to run less than superunleaded on WRX or Cosworth or anything else.
And like the previous post sais, pinking causes the igniting fuel / air to push against the engines rotation putting strain on components.
Higher octane, more stable detonation, further advanced timing = more power.[/quote]