PNGRB plans trading platform for fuel products, new logistics strategy for POL distribution

New Delhi: The Petroleum and Natural Gas Regulatory Board (PNGRB) has proposed the development of a petroleum products exchange and a national logistics plan for petroleum, oil, and lubricants (POL) distribution as part of its action plan for the financial year 2025-26.According to the plan document, the proposed petroleum products exchange is aimed at creating a transparent and regulated trading platform for petroleum products to facilitate supply-demand balance, price discovery, and market competitiveness.The action plan notes, “The concept is being designed to provide a transparent, efficient, and regulated environment for the trading of petroleum products, facilitating fair and transparent pricing, supply-demand balance, and market competitiveness.”In parallel, the PNGRB is also planning a National Distribution Logistics Plan (NDLP) for POL to ensure efficient, reliable, and cost-effective movement and distribution of petroleum products across India. The proposed plan will include integrated logistics solutions, leveraging existing and upcoming infrastructure to improve the efficiency of POL transportation.The document outlines that the strategic planning division of PNGRB will lead the conceptualisation of the petroleum products exchange and NDLP. The projects are part of a broader effort to strengthen the petroleum and natural gas sector’s supply chain and infrastructure in the upcoming fiscal year.Another proposal in the action plan includes allowing the co-retailing of motor spirit (MS) and high-speed diesel (HSD) at existing CNG and LCNG stations. This initiative is intended to optimise land use and improve the commercial viability of retail fuel outlets.PNGRB is also working on a framework to link petroleum product marketing with the monetisation of oil and gas infrastructure assets. The document states, “The synergy between marketing and monetization is critical for India’s energy sector to evolve efficiently and equitably.”These proposed initiatives are aligned with PNGRB’s regulatory mandate to promote competition, transparency, and investor participation in the natural gas and petroleum products sectors.The action plan includes multiple projects across divisions focusing on network expansion, regulatory capacity building, operational improvement, and adoption of digital technologies for pipeline and city gas distribution (CGD) monitoring.