A fuel management system mounted on a vehicle is operative to feed an individual grade or a mixture of grades of relatively low, intermediate, and high RON fuels, from respective tanks to an associated internal combustion engine. The system includes an on board separation unit (OBS unit) for receiving and separating intermediate RON fuel, from an IRON tank into low and high RON fuels, LRON and HRON, respectively, for delivery to LRON and HRON tanks, respectively. The production rate of the LRON and HRON fuels by the OBS unit is controlled to substantially match the consumption requirements of the engine at any given time for the LRON and HRON fuels.