The rising petrol and diesel prices have taken a heavy toll on consumers in the last few weeks. Even though the government still hasn’t announced any immediate action plan to take control of the surging fuel prices, it is apparently working on launching petrol and diesel futures, which may open up an additional avenue for the trader community. Oil Minister Dharmendra Pradhan has said that the ministry has already given nod for petrol and diesel futures launch and the timing was right for launching of such products in India.
“The Petroleum and Natural Gas Ministry has given an in-principle nod to launch petrol and diesel futures contracts and we are hoping that SEBI will give final approval in this regard soon,” ICEX Managing Director and Chief Executive Officer Sanjit Prasad told PTI.
Petrol, diesel futures contract
The petrol and diesel futures are expected to help hedge against volatility in oil prices that his being witnessed in the last few weeks. Similar to other futures contracts including that of crude, unleaded gas, heating oil or natural gas, the diesel and petrol futures are also expected to be designed in such a way that it allows consumers to buy them at a fixed price for a delivery at a future date, say a month from now. Read More