Toluene is derived from coal tar as well aspetroleum. It occurs in gasoline and manypetroleum solvents. Toluene is used to producetrinitrotoluene (TNT), toluene diisocyanate,and benzene; as an ingredient fordyes, drugs, and detergents; and as an industrialsolvent for rubbers, paints, coatings, andoils.

Toluene has numerous applications in the chemical and petroleum industry, with approximately 6 million tons used annually in the United States and 16 million tons used globally. The major use of toluene is as an octane booster in gasoline. Toluene has an octane rating of 114. Toluene is one of the four principal aromatic compounds, along with benzene, xylene, and ethylbenzene, that are produced during refining to enhance gasoline’s performance. Collectively, these four compounds are abbreviated as BTEX. BTEX is a major component of gasoline, forming about 18% by weight of a typical blend. Although the proportion of the aromatics is varied to produce different blends to meet geographic and seasonal requirements, toluene is one of the major components. A typical gasoline contains approximately 5% toluene by weight.
Toluene is a primary feedstock used to produce various organic compounds. It is usedto produce diisocyanates. Isocyanates contain the functional group ?N = C = O, and diisocyanatescontain two of these. The two main diisocyanates are toluene 2,4-diisocyanate andtoluene 2,6-diisocyanate. The production of diisocyanates in North America is close to a billionpounds annually. More than 90% of toluene diisocyanate production is used for makingpolyurethanes foams. The latter are used as flexible fill in furniture, bedding, and cushions.In rigid form it is used for insulation, hard shell coatings, building materials, auto parts, androller skate wheels.

In manufacture of benzoic acid, benzaldehyde, explosives, dyes, and many other organic Compounds; as a solvent for paints, lacquers, gums, resins; thinner for inks, perfumes, dyes; in the extraction of various principles from plants; as gasoline additive.