Over 60,000 retail petrol pump and hundreds and thousands of small and big transporters, bulk users and diesel-consuming industries will soon be able to hedge the price risk in petrol and diesel, as Sebi is in final stages of allowing futures in these two commodities.
ICEX, the third largest Commodity Exchange, has urged the regulator to allow futures trading in petrol and diesel. Unlike crude oil, the prices of these two products derived from the fossil fuel are fixed in India once a day by oil marketing companies, based on market forces. Hence hedging is more real than the proxy.