A beginner’s guide to gasoline: Price, uses & market overview

Explore a thorough overview of the gasoline market, learn how it works in simple terms and get to grips with its significance as a popular global commodity.
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Updated on Aug 28, 2024
Reading time 5 minutes

On this page, we explore everything you need to know about gasoline. Gain insights into gasoline market trends, pricing mechanisms, and the environmental impact of gasoline. 

Read on to learn more about this popular commodity and find links to beginner friendly guides explaining how you can get involved in gasoline. 

What is gasoline?

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Gasoline is a flammable liquid composed mainly of hydrocarbons. Also known as petrol or gas, it is used as a fuel for internal combustion engines in automobiles, motorcycles, and other vehicles. Gas is a crucial source of energy in the modern world and contributes significantly to economic growth and development. 

The commodity was first discovered in the early 19th century by Edwin Drake who drilled the first commercial oil well in Pennsylvania, USA. By the late 19th century, engineers developed a method to refine crude oil into gasoline. 

Gas is one of the most important commodities in the world. It is a versatile fuel that can easily be stored and transported making it an accessible energy source for a wide range of applications. 

Gasoline market overview

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The gasoline market is vast and is valued at $125.97 billion in 2025. This figure is expected to grow at an annual rate of 1.5% over the next five years reaching a projected $138 billion. 

The price of gas is impacted by various factors including demand for transportation, economic growth, and government policies. Gasoline is traded on various exchanges, including the New York Mercantile Exchange (NYMEX) and the Intercontinental Exchange (ICE). Futures contracts are the main way gas is traded. 

Is gasoline valuable? 

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Yes, gasoline is a valuable commodity and there are numerous reasons why investors are attracted to the market. We have highlighted some of these key fundamentals below, explaining what they are and why they matter.

  • Gas is a vital source of energy. Gasoline is a crucial energy source used to power a large portion of the world’s transportation needs. Cars, motorcycles, trucks, and other vehicles all rely on gasoline or petrol to run. Transportation is a larger part of the global economy and without gas, would come to a standstill. 
  • It is a versatile fuel. One of the benefits of gasoline is its versatility. Not only is it easy to store gas, it can easily be transported making it convenient and accessible for all parts of the world. 
  • Gas plays a major role in the global economy. As previously mentioned, gas has major significance when it comes to the global economy. Not only is it necessary for vehicles, the gas industry employs millions of workers from oil exploration and production, to refining and transportation. 
  • Gasoline can add diversification to your portfolio. Lots of investors like to include traditional markets like stocks and bonds in their portfolios. However, the inclusion of commodities like gasoline can help reduce overall risk as its price is not always correlated with other commodities or asset classes. 

How to invest in gasoline

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You can invest in gasoline by using a commodity trading platform. These platforms offer a range of commodities and are very easy to use. There are different platforms suitable for specific requirements. 

Some let you buy gasoline, others let you trade gasoline, and many are designed for investing in the grain. Visit our dedicated guide to discover how to invest in gasoline.

Gasoline in your investment portfolio

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A diverse investment portfolio can help protect you during market uncertainty, and the inclusion of gasoline can add value while allowing you to spread your money across various markets. 

Gasoline often moves independently to traditional investments like stocks and bonds. You can include gasoline in your portfolio as a hedge against potential losses. During times of economic uncertainty, investors view commodity grains such as gasoline as attractive options. 

Gasoline vs other commodities

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Gasoline is part of the energy family of commodities, including oil, natural gas, and ethanol. Each commodity is unique in its own way and offers different features for investors and traders. You can learn more about specific commodities using our dedicated guides below. 

  • Oil. Oil is an essential commodity used globally for energy production. 
  • Natural gas. Natural gas is an energy commodity used to power nations across the world. 
  • Ethanol. Ethanol is a fuel made by fermenting and distilling sugars from crops like corn and grains.

FAQs

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01

What is the market for gasoline?

02

Where does the UK get its gasoline?

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Where does the United States get its gasoline?

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What country buys the most gasoline?

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What is the gasoline outlook for 2025?


Sources & references

Prash Raval

Prash Raval

Financial Writer

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Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while running an educational service helping novice traders learn the markets. He has a keen interest in micro and small cap stocks....