Bombay HC Issues Notice To Centre Over Plea Alleging LPG Exports Amid Domestic Shortage
The Bombay High Court issued a notice on Thursday to the Union government and Confidence Petroleum India Ltd (CPIL) over a petition alleging that LPG exports are being prioritised despite an ongoing shortage in domestic supply, according to Bar and Bench.
The order was passed by the Nagpur Bench of the court, where a Division Bench comprising Anil S. Kilor and Raj D. Wakode described the matter as a “serious issue of grave importance.”
The petition was filed by six LPG dealers led by Omkar Sales, who claimed that a severe disruption in the LPG supply chain has created an acute shortage in parts of Maharashtra, particularly in the Vidarbha region.
During the hearing, the court directed CPIL to ensure that the storage and supply of LPG for domestic consumption strictly follow the Central government’s existing policy until the matter is finally decided.
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The court has scheduled the next hearing of the case for March 17.
According to the petitioners, the dealers, all long-time distributors of CPIL, have been facing serious difficulties due to disruptions in the LPG supply chain.
They argued that the shortage has affected the ability of distributors to meet the needs of households, hotels, small industries and commercial establishments across Nagpur and nearby districts.
The petitioners stated that they source 100 per cent of their LPG requirements from CPIL, and the current shortage has left them unable to supply cylinders to customers on time.
The distributors also linked the disruption to the ongoing geopolitical tensions involving the United States, Iran and other Middle Eastern suppliers, which have affected the global energy supply chain.
In their petition, the dealers alleged that CPIL is diverting significant quantities of LPG for international exports to take advantage of rising global prices.
They argued that such exports are worsening the domestic shortage and placing ordinary consumers under severe pressure.
The petition further claims that the diversion of LPG for exports is happening despite government policies meant to prioritise domestic supply during times of shortage.
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The petitioners referred to two orders issued by the Ministry of Petroleum and Natural Gas on March 5 and March 9 under the Essential Commodities Act and the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999.
According to the revised order dated March 9, refineries and petrochemical complexes are required to ensure that their entire production streams are used for LPG production and made available to public sector oil marketing companies.
The order also prohibits diverting these streams to petrochemical products.
On the same day, the government issued the Natural Gas (Supply Regulation) Order, 2026, which prioritises sectors such as LPG production and domestic piped natural gas supply.
The LPG dealers said they had already sent representations to CPIL on March 9, requesting the company to reconsider its export strategy and give priority to domestic markets.
They warned that the shortage is not only affecting consumers but is also causing financial and operational strain for distributors, as delayed deliveries are leading to payment issues and customer dissatisfaction.
CPIL has denied the allegations made in the petition.
The company stated that it is simply fulfilling export contracts that were negotiated well in advance and insisted that it is not diverting LPG supplies meant for domestic consumers.
According to the company, prioritising domestic supply in the current situation is challenging due to existing international contractual obligations.
The High Court will now examine the matter further when the case comes up for hearing next week.
(With inputs from Bar and Bench)
