Finance Minister is expected to provide guidelines for the introduction of the direct and indirect tax reforms i.e. the direct tax code (DTC) and the Goods & Services Tax (GST).

FM may increase excise duties to decrease the fiscal stimulus measures and may raise the service tax also from 10%. We expect FM to project a lower fiscal deficit for coming financial year on account of higher revenue projections. Another prime focus would be on reforms to reduce the subsidy burden by decontrolling the petrol and diesel prices and price rise on kerosene and LPG cylinder.

Among the financial sector reforms, issue of raising the FDI cap in private sector insurance companies from 26% to 49% is expected to remain on top. We expect that focus area for expenditure would remain the same i.e. agriculture, water, infrastructure, rural and social schemes and power.

A 42-gallon barrel of crude oil produces about 19.5 gallons of gasoline after refining. Oil is broken down into the following components: 19.5 gallons is used to produce gasoline, 9.2 gallons are used to produce distillate fuels (such as Heating Oil), 4.1 gallons go for the production of kerosene jet fuel, and 2.3 gallons are used in the production of residual fuels. The remainder is primarily for chemical production and lubricants.

Gasoline characteristics are also affected by other ingredients that may be blended into it, such as ethanol. Most of the fuel ethanol added to gasoline is made from corn grown in the United States. The gasoline performance must meet industry standards and environmental regulations that vary by location.

The world demand for gasoline averages about 20 million barrels a day. Of this, US consumes the most with an average daily demand of 8 million barrels a day. The demand increased to over 9 million barrels a day in 2007, but tempered to about 8.9 million barrels per day by December 2008. In 2007 U.S. refineries produced 90 percent of the gasoline used in the United States. Although the United States is the world’s third largest crude oil producer, less than 35 percent of the crude oil used by U.S. refineries is produced in the United States. Net petroleum imports (imports minus exports) accounted for 58 percent of total petroleum consumption. About 48 percent of net petroleum imports were from countries in the Western Hemisphere, 18 percent from the Persian Gulf, 22 percent from Africa, and 12 percent from other regions. Most gasoline is used in cars and light trucks. It also fuels boats, recreational vehicles, farm, construction, and landscaping equipment.

There are so many factors, which affect gasoline prices, many of which are unpredictable, such as natural disasters, changing governmental policies and evolving international relations. Uncontrollable environmental factors can significantly impact the price of oil and thus the price consumers pay for gasoline. Generally, the demand for oil in the form of gasoline rises during the summer, when automobile and air travel increase. Correspondingly, the price for gasoline tends to be higher during the summer months than it is during the remainder of the year, with other factors being constant. While this is not always the case, the price of gasoline is affected by the magnitude of demand and thus follows a somewhat seasonal fluctuation.

A future trading in gasoline is so popular, now gasoline futures are globally traded in New York Mercantile Exchange and Intercontinental Exchange.

The commodity market regulator Forward Markets Commission (FMC) has cleared Multi Commodity Exchange’s (MCX) will launch futures trading in gasoline.