Paraffinic Products

Why Mini Petroleum Refinery is needed in Global Market?

Main Features Gasoline (America) or Mogas or petrol (Commonwealth nations) is a petroleum-derived liquid mixture which is primarily used as fuel in internal com ustion engines! "t is primarily used as a fuel for passenger vehicles! "t is also used in utility vans off road# agricultural machinery and other internal com ustion engines used in a variety of service applications! Gasoline is a complex mixture of relatively volatile hydrocar ons# ranging from C$ to C%%# which vary widely in chemical and physical properties and are derived from the fractional distillation of crude oil in petroleum refineries y further treatment# mainly in terms to improve its octane! &mall amounts of various additives are common# for purposes such as engine performance tuning or reduction of harmful exhaust emissions! &ome mixtures also contain significant amounts of ethanol as a partial alternative fuel! 'he fuel is made y mixing together various refinery streams! 'he exact ratios depend on the oil refinery ma(es gasoline# crude oil feed used y the refinery and the quality of gasoline# in particular the octane num er! Many countries have esta lished strict standards for grades of gasoline! )eavy crude oil gives less gasoline and sulfur in them is high and contains very little sulfur gasoline! Gasoline is made from crude oil and its price shows a high correlation with oil prices! 'he correlation in *++, is estimated to have een around -./! 0efineries around the world are interested in oil -Gasoline crac(! 'his is the winning margin when refining crude oil into various products# especially gasoline! Crac( margins worldwide vary from 1!&! 2 $-%$ arrel! 'herefore# to loc( in their margins# refineries in developed countries ta(e positions in crude oil and gasoline derivative contracts simultaneously! Global Scenario Glo al demand for gasoline is estimated to average *+ million arrels a day! 'he 1nited &tates is the largest consumer with an average consumption of a out ,!- million arrels per day in *++,# representing over $+/ of glo al consumption! 'his was more than - million arrels per day in *++3! 4orld production of gasoline was reported to e a ove 5!66 illion arrels in *++3! Glo ally# the production of gasoline accounted for over *. / of the total production of refined products in *++3!

Mix Aromatics &olvents 1!&! is the largest refiner of crude oil holding *+ / of the total glo al refining capacity of ,3#3++ (ilos of arrels per calendar day # followed y China ( ,!-/ ) # 7ormer &oviet 1nion (,!,/ ) # 8apan ( 6!./ ) and "ndia ( $!%/ )! )owever# the production of gasoline in any country depends on the type of economy that continues! 7or example# while the 1!&! has adopted a gas - ased economy# "ndia is largely a diesel - ased economy# leading to increased production and consumption of gasoline in the 1!&! and high speed diesel ()&9) in "ndia! Moreover# light sweet crude used y 1!&! Produces more gasoline! Petrol World Markets Chicago Mercantile :xchange (CM:)# which has acquired ;ew <or( Mercantile :xchange (;<M:=)# derivatives mar(et runs the world>s most liquid gasoline! ?ther derivatives exchanges that offer this product are '?C?M# 8apan and MC= "ndia! What is the Importance of Mini Petroleum Refinery in Indian Market? Indian Scenario 'he growth of the "ndian economy# increasing the income of the country>s middle class has led to an increasing num er of passenger vehicles and therefore# increased gasoline demand in "ndia for the last %+ - %6! "ndia>s consumption of gasoline in *++,-+- is estimated at ,*!6 million arrels in *++,-+-# which is a strong .5/ increase in consumption in *++$-+6 of 5+!6 million arrels! Gasoline production in "ndia has shown a mar(ed improvement in the past two decades supports the creation of new refineries and increased capacity utili@ation! Gasoline production has increased from *5 million arrels in %--+ A -%-%%3$+++++ arrels in *++,-+-# mar(ing an increase of .6+ /! Gasoline exports from "ndia have grown su stantially# with his Bump of %3!3 million arrels in *++6 to +5-.-%+++++ arrels in *++,-+-# representing an increase of %*+ /# exposure "ndian refineries exporting to the high volatility of world prices! Most refineries in "ndia are state-owned and have a policy of sta le prices under government regulations! MaBor refineries include "ndian ?il Corporation Ctd ( "?CC ) # Dharat Petroleum Corporation Ctd ( DPCC ) # )industan Petroleum Corporation Ctd ( )PCC ) and 0eliance "ndustries Ctd (0"C ) ! 'he 0"C e a private actor exports most of its production of petroleum products! ?ils E Allied Mixed )ydrocar ons Market Moving Factors

Glo ally# gasoline prices are highly correlated with oil prices as the cost of gasoline production includes the cost of crude oil used plus the cost of refining# distri ution# taxes and includes measures for environmental protection! "t is estimated that oil constitutes only 3+/ of the price of gasoline! 'herefore# all the factors that influence oil prices have a profound influence on gas prices too! 'hese factors include supply and demand# the glo al economic scenario# natural disasters# currency fluctuations# geopolitical tensions# interest rates# prices of other assets# commodities# etc! 'he scenario of supply and demand in the 1!&! "s very important as the 1!&! is the largest consumer# accounting for a out $+ / of glo al consumption! &easonal fluctuations seen in world prices of gasoline# such as increased driving and air travel is seen during the summer season in temperate # developed countries ! 'his increase in demand is consistent with an increase in prices# provided that all other factors are held constant! )owever# refineries generally are well equipped to meet this growing demand! 'he storage also plays an important role in trade patterns and prices! 4hen inventories are full# the availa ility of large amounts lowers the price! Conversely# when stoc(s are relatively low# prices tend to increase! "nterruptions in production due to extreme weather conditions or other unforeseen events can lead to prices collected!

Arham Petrochem recogni@ed mini petroleum refinery producing )eavy Aromatic &olvent and Mini Petroleum 0efinery