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Definition: Gasoline or petrol is a derivative product of crude oil/petroleum. It is derived during fractional distillation process and has a translucent liquid form. It's not used in its crude form. Different additives are added like ethanol to use it as fuel for passenger vehicles. In the US and Latin countries, term gasoline is used, but in Europe and Asian countries it's called petrol.
Description: Majorly all around the world gasoline is used as fuel for vehicles. It's one of the main products, which is consumed heavily worldwide. Thus, it affects the WPI of countries or Inflation. A major driver of petrol prices are crude oil prices, which is one of the most important macro economic indictor for world. The US is the biggest consumer of gasoline all over the world, where nearly 45% is consumed. They have highest usage rates per person.
Other major consumers are Britain, China, Japan and India. The US is also the largest refiner in the world. Other major countries are also in the refining business, but all is consumed within those countries itself. European countries have highest prices for petrol compared to the rest of the world as they are majorly importers of gasoline. In India petrol prices were initially subsidized, but now its prices are fixed in the open market with government control.
Some commodity derivative exchanges which offer gasoline contracts include NYMEX (US), TOCOM (Japan) and MCX (India).
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