If you don't increase the fuel volume by ~ 30% you will not only make less power, but you will also lean out your motor and hurt it. Yes, if run properly it will get much less MPG, but at a much lower cost you usually come out ahead...if you were running 87 octane pump gas in the first place then it is probably a wash...if you were running premium or race gas you will save $ at the pump.
By the way...what type of metal was underneath that nasty black corrosion, cast iron, steel? Just curious what might be going on there. :)