Gasoline or petrol is a petroleum-derived liquid mixturewhich is primarily used as a fuel in internal combustion engines. It is alsoused as a solvent, mainly known for its ability to dilute paints. It is acomplex mixture of over 500 hydrocarbons that may have between 5 to 12 carbons.Smaller amounts of alkane cyclic and aromatic compounds are present. Virtuallyno alkenes or alkynes are present in gasoline.
Gasoline is most often produced by the fractionaldistillation of crude oil. The crude oil is separated into fractions accordingto different boiling points of hydrocarbons of varying chain lengths. Thisfractional distillation process yields approximately 25% of straight-rungasoline from each barrel of crude oil.
The yield of gasoline may be doubled by converting higher orlower boiling point fractions into hydrocarbons in the gasoline range.
Typical Compositionof Gasoline
General Name Examples Percentage
Aliphatic - straight chain heptanes 30-50
Aliphatic - branched isooctane
Aliphatic - cyclic cyclopentane 20-30
Aromatic ethylbenzene 20-30
On NYMEX gasoline contract is traded under the name of RBOBstands for "reformulated gasoline blendstock for oxygen blending." Itis the new benchmark on the New York Mercantile Exchange. NYMEX phased outtrading in unleaded gasoline futures because that product contained thechemical MTBE, which is banned in many states for polluting groundwater. RBOBis an unfinished product which does not have MTBE
India is the net exporter of Gasoline. Indias averageproduction per month of gasoline in the Financial Year 2010-2011 is 2050 KTwhere as consumption is much lower which stands at 1183 KT. Product being soldalways at higher premium , in comparison to other products ,fascinates everyrefiner to maximize its production from the available product slate. In India,52 per cent of the price of petrol consists of duties and taxes (customs,excise and sales tax) leading to the high costs that people pay for , which isimpact of cross subsidy on Kerosene which is served in PDS(Public DistributionSystem) at a very less rate than even its cost of production.
Cost ofcrude oil. It is calculated that crude oil makes up for 60% of the price ofgasoline.
Supply-demand,natural disasters, currency fluctuations, geo-political tensions, interestrates, prices of other assets, commodities etc.
Thesupply-demand scenario in US, is very important as US is the largest consumer,accounting for around 38% of global consumption.
Seasonalfluctuation is seen in global gasoline prices, as increased driving and airtravel is seen during the summer season in temperate, developed countries.
Storagealso plays an important role in trade patterns and prices. When inventories arefull, this ready availability of large supplies drives down the price. Incontrast, when stocks are relatively low, prices tend to increase.
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