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Yes it will, since you have knock sensors anytime (archive)

[ Follow Ups ] [ 5-series (E34) Message Board ] [ Msg. Board FAQ ]

Posted by Bill R. on August 30, 2001 at 09:56:29:

In Reply to: gasoline octane posted by george covell on August 30, 2001 at 09:45:53:

pinging or knocking is detected it will retard the timing. By running the higher grade in your car you can take full advantage of its power capabilities.

I have been using 87 octane in my 95 525I and it seems fine.
would going to a higher grade- 89 or 92,price notwithstanding, make a significant difference?
george covell

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