It was good enough because it was wartime and things had to be done. That doesn't mean it wasn't a compromise.
Avgas still needs to work as avgas, all gasolines are basically petroleum(oil) products, the biggest difference between oil and gasoline are additives and destillation. For a gasoline engine to run you need fuel with higher energy than oil, for that you need to add ingredients to it. Those ingredients usually also make it work as a solvent. Even though they had a "light oil" etc. they still had to use something that worked as gasoline. No chance in hell those engines put out their full output on "light oil".
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