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Oil Ministry gives in-principle approval for futures trading in petrol, diesel: ICEX

29 May 2018 Evaluate

Amid rising fuel prices, Indian Commodity Exchange (ICEX) stated that the Oil Ministry has given its in-principle approval for futures trading in petrol as well as diesel. It added that the final clearance from regulator SEBI should come soon. The development comes at a time when state-run oil marketers have hiked petrol and diesel prices continuously for the past two weeks.

Commodity derivatives exchange ICEX has said the decision was taken by the ministry after consultations with oil marketing companies and other experts. The contracts are expected to help hedge against volatility in oil prices.

ICEX had approached SEBI seeking its nod to launch petrol and diesel futures contracts. Following this, the capital markets watchdog had sought views from the ministry in this regard. Besides, petrol price has been hiked by Rs 3.64 a litre and diesel by Rs 3.24 in Delhi since state-owned oil firms ended a 19-day pre-Karnataka poll hiatus to resume daily price revision on May 14.