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India set for petrol and diesel futures contract

ICEX to launch oil contracts soon

Prasad of ICEX (file pic).

Indians, facing ever increasing petroleum prices of their living standards, will soon be able to trade in futures contracts covering petrol and diesel prices.

Indian Commodity Exchange (ICEX) has the infrastructure to trade forward contracts based on petrol and diesel prices, offering risk management to energy-cost sensitives, said its Managing Director and Chief Executive Officer Sanjit Prasad, announcing the oil futures contracts on 28 May 2018.

ICEX has received in-principle approval from the Petroleum and Natural Gas Ministry while final clearance is expected soon from the Securities and Exchange Board of India (SEBI).

“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,” Prasad told Press Trust of India.

ICEX has presented details to the Ministry as promoter of the futures contracts for trading petroleum products, the first of its kind to support the domestic energy cost management.

The bourse launched the world’s first diamond derivatives contracts in August 2017 with 1-carat futures contracts, and subsequently added the 50-cents contracts.

Crude oil prices have been rising on the world market with India, which imports 80% of its petroleum needs, having the most severe impact on economic growth and consumer pockets.

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