The EPA's push to low sulfur gasolines for better emissions has actually stressed the refining system and upset the balance for making gasoline/diesel/heating oil/kerosene to supply the US demand. Becuase of the demand for more gasoline than "middle distillates" the refineries are far more complicated to operate and run than in Europe, where passenger car diesel demand keeps the product slate much closer to what you can more easily extract from crude.
Occasional hiccups at a refinery produce a form of sulfur compound that is aggressive to silver contacts on the fuel gauge sending unit. There isn't a source of sulfur that can "leak into" gasoline as the article implies.
Typically, Japanese and European sending units are gold plated and don't have this problem. The sulfur forms a coating on the windings and the electrical contact is lost. The needle will begin by jumping - as if the wire was being momentarily disconnected, but then reconnected, which is exactly what is happening. When it's bad enough, the needle will read zero, which is the default postion. (OEMs would want the sytem to fail to empty, otherwise a bad gauge or sending unit would fool the customer to thinking they could keep driving. I don't think there is a US OEM that designed their gauges this way!)
Unfortunately, if this happens, there isn't a fix other than removing or physically cleaning the windings. In theory, alcohols might reverse the chemical reaction, but many gasolines already contain 10% ethanol.
I'm also surprised to see the issue with premium. The problems occur with regular, since that is the huge majority of the volume, and it's trying to maximize the volume that leads to things like this.
It costs about a penny per octane number to produce higher octane gasoline. Roughly, 91 octane costs 4 cents more than 87 octane, but is sold for 20 cents more? Selling premium for regular prices should still cover the service station's costs, and if the producer (Shell) told the stations to do so, you can bet they are paying the difference. I don't think the service stations suffered at all, especially since they didn't even have to clean out or pump down their tanks.