Amid daily price fluctuations in the petrol-diesel prices, the ICEX is awaiting regulatory nod for petrol and diesel futures contracts.

Stating that the futures in petrol and diesel will ease the price risk for bulk consumers such as transporters, a top official of the Exchange emphasised the need for a hedging tool to cover price risks as the price was changed daily.

“We are awaiting the regulator’s approval for the petrol and diesel futures. There is no need to fear about speculation in this contract as it will be a monthly cash-settled contract, which will not allow manipulators on it,” said Sanjit Prasad, Managing Director and CEO, ICEX. Prasad stated that the uncertainty over the daily price fluctuation is causing financial loss to bulk consumers such as truckers and transporters.

“The futures contract is designed to mitigate the risk of daily price movement. This is not a price discovery platform, but will act as a hedging platform. Therefore, this should be used for hedging purposes,” said Prasad.

The Petrol and Diesel Futures will enable retail outlets, large fleet owners, transporters, multiple bulk fuel consuming industries and, indirectly, the retail consumer to safeguard against the price uncertainty and protect their business margins, stated Prasad.