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Knock in gasoline engines at higher loads is a significant constraint on torque and efficiency. The anti-knock property of a fuel is closely related to its research octane number (RON). Ethanol has superior RON compared to gasoline and thus has been commonly used to blend with gasoline in commercial gasolines. However, as the RON of a fuel is constant, it has not been used as needed in a vehicle. To wisely use the RON, an On-Board Separation (OBS) unit that separates commercial gasoline with ethanol content into high-octane fuel with high ethanol fraction and a lower octane remainder has been developed. Then an onboard Octane-on-demand (OOD) concept uses both fuels in varying proportion to provide to the engine a fuel blend with just enough RON to meet the ever changing octane requirement that depends on driving pattern.