One of the most critical economic issues for a petroleum refiner is selecting the optimal combination of components to produce final gasoline products. Gasoline blending is much more complicated than a simple mixing of components. First, a typical refinery may have as many as 8 to 15 different hydrocarbon streams to consider as blend stocks. These may range from butane, the most volatile component, to a heavy naphtha and include several gasoline naphthas from crude distillation, catalytic cracking, and thermal processing units in addition to alkylate, polymer, and reformate. Modern gasoline may be blended to meet simultaneously 10 to 15 different quality specifications, such as vapour pressure; initial, intermediate, and final boiling points; sulfur content; colour; stability; aromatics content; olefin content; octane measurements for several different portions of the blend; and other local governmental or market restrictions. Since each of the individual components contributes uniquely in each of these quality areas and each bears a different cost of manufacture, the proper allocation of each component into its optimal disposition is of major economic importance. In order to address this problem, most refiners employ linear programming, a mathematical technique that permits the rapid selection of an optimal solution from a multiplicity of feasible alternative solutions. Each component is characterized by its specific properties and cost of manufacture, and each gasoline grade requirement is similarly defined by quality requirements and relative market value. The linear programming solution specifies the unique disposition of each component to achieve maximum operating profit. The next step is to measure carefully the rate of addition of each component to the blend and collect it in storage tanks for final inspection before delivering it for sale. Still, the problem is not fully resolved until the product is actually delivered into customers’ tanks. Frequently, last-minute changes in shipping schedules or production qualities require the reblending of finished gasolines or the substitution of a high-quality (and therefore costlier) grade for one of more immediate demand even though it may generate less income for the refinery.

The principal end use of gas oil is as diesel fuel for powering automobile, truck, bus, and railwayengines. In a diesel engine, combustion is induced by the heat of compression of the air in the cylinder under compression. Detonation, which leads to harmful knocking in a gasoline engine, is a necessity for the diesel engine. A good diesel fuel starts to burn at several locations within the cylinder after the fuel is injected. Once the flame has initiated, any more fuel entering the cylinder ignites at once.

Straight-chain hydrocarbons make the best diesel fuels. In order to have a standard reference scale, the oil is matched against blends of cetane (normal hexadecane) and alpha methylnaphthalene, the latter of which gives very poor engine performance. High-quality diesel fuels have cetane ratings of about 50, giving the same combustion characteristics as a 50-50 mixture of the standard fuels. The large, slower engines in ships and stationary power plants can tolerate even heavier diesel oils. The more viscous marine diesel oils are heated to permit easy pumping and to give the correct viscosity at the fuel injectors for good combustion.

Until the early 1990s, standards for diesel fuel quality were not particularly stringent. A minimum cetane number was critical for transportation uses, but sulfur levels of 5,000 parts per million (ppm) were common in most markets. With the advent of more stringent exhaust emission controls, however, diesel fuel qualities came under increased scrutiny. In the European Union and the United States, diesel fuel is now generally restricted to maximum sulfur levels of 10 to 15 ppm, and regulations have restricted aromatic content as well. The limitation of aromatic compounds requires a much more demanding scheme of processing individual gas oil components than was necessary for earlier highway diesel fuels.