Oil Ministry approves futures trading of petrol and diesel

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According to a media report, the Ministry of Petroleum and Natural Gas has given an approval for petrol and diesel futures. The Indian Commodity Exchange (ICEX) had requested Securities and Exchange Board of India's (SEBI) approval to launch these futures.

Fuel prices have been going up over the last 2 weeks. The petrol prices in the metros are Rs. 78.46 per litre in Delhi, Rs. 86.27 in Mumbai, Rs. 81.09 in Kolkata and Rs. 81.46 in Chennai. Meanwhile, diesel is priced at Rs. 69.34 in Delhi, Rs. 73.82 in Mumbai, Rs 71.88 in Kolkata and Rs.73.21 in Chennai.

The main reason for the futures is to hedge against rising prices of petrol and diesel. Businesses affected by fuel price revisions including large fleet operators, petrol pump owners, refineries and oil marketing companies could make use of these to reduce their losses.

Source - The Economic Times