New Delhi, April 15 -- India is considering creating a financial buffer for petroleum products such as petrol, diesel and LPG (liquefied petroleum gas) to manage supply disruptions and global price volatility, according to two people aware of the development.

The buffer would be similar in concept to the price stabilization fund (PSF) that exists to help manage inflation in select critical agricultural commodities, which was set up in fiscal year 2015 (FY15).

The plan for a dedicated price stabilization fund for energy-being explored by the Union ministries of consumer affairs, food and public distribution, and petroleum and natural gas-was mooted during a recent meeting of the empowered group of secretaries, the people cited above said...