The Petroleum and Natural Gas Regulatory Board (PNGRB) announced plans to establish an exchange for trading various petroleum products such as aviation turbine fuel (ATF), naphtha, fuel oil, lubricants, bitumen, and petcoke. The move is aimed at creating a transparent, efficient, and regulated trading platform to ensure fair pricing, improve supply-demand alignment, and enhance market competitiveness. In its official action plan for the current fiscal year, PNGRB emphasized that the exchange will offer a more open pricing mechanism for products currently sold via tenders or periodic price settings by refiners.
Regulatory Framework in Progress
To make the exchange a reality, PNGRB plans to establish a comprehensive regulatory framework similar to the one in place for the natural gas exchange. This framework will support the structured trading of select petroleum products and introduce a new level of price discovery and market efficiency in the downstream oil sector.
Petrol, Diesel and LPG Not Included—For Now
The exchange will exclude petrol, diesel, and liquefied petroleum gas (LPG), as the government still governs their pricing through a defined mechanism. An official noted that if the pricing structure changes in the future, the proposed platform could potentially trade even these widely used fuels.
Push for Open Access to Pipelines
In a parallel effort to improve infrastructure access, PNGRB is also advocating for converting petroleum product pipelines owned by state-run oil companies into “common carriers.” This would allow private players to use the same pipeline infrastructure to transport their products across the country, boosting competition and operational efficiency.
National Logistics Plan Also on the Agenda
Alongside the exchange initiative, PNGRB has set a target to develop a comprehensive national distribution logistics plan. The goal is to ensure an efficient, reliable, and cost-effective supply chain for petroleum products, with optimal utilization of existing infrastructure.
This forward-looking plan aims to strengthen last-mile delivery, reduce logistics costs, and improve access across India’s growing energy market. As reported by etenergyworld.com, by building a petroleum products exchange and enhancing infrastructure access, PNGRB is taking a major step toward modernizing India’s downstream sector and preparing it for a more competitive and transparent energy future.