The Nagpur bench of Bombay High Court on Thursday issued notice to the Union government and Confidence Petroleum India Ltd (CPIL) on a plea by six Liquefied Petroleum Gas (LPG) dealers alleging that exports are being prioritised over domestic supply amid acute shortage of LPG [Omkar Sales and Ors v. Union of India and Ors]
A Division Bench of Justices Anil S Kilor and Raj D Wakode termed the issue as "serious" and of grave importance.
Till the petition is finally decided, the bench directed CPIL to ensure that storage and supply of LPG for domestic consumption are in line with the Central government’s prevailing policy.
The petition will be next heard on March 17.
According to the petition, M/s Omkar Sales and five other dealers (petitioners), all long-standing distributors of CPIL, are directly bearing the consequences of a “severely disrupted” LPG supply chain in Maharashtra’s Vidarbha region.
They attributed this to the recent conflict involving Iran, the US and other Middle Eastern suppliers, which disrupted the supply chain of Oil and other essential commodities leading to an acute and unprecedented shortage in the domestic supply of LPG.
“This is causing widespread hardship to consumers across the country, particularly in the State of Maharashtra and the Vidarbha region,” the petition stated.
The dealers contended that they procure 100% of their LPG requirements exclusively from CPIL and are now unable to meet the demands of households, hotels, small industries and commercial establishments in Nagpur and surrounding districts.
Despite this, they alleged that CPIL is channelling significant volumes of LPG toward international exports to capitalise on elevated global prices in blatant violation, deepening the domestic crunch at the expense of ordinary consumers.
The petitioner highlighted two Ministry of Petroleum and Natural Gas (MoPNG) orders dated March 5 and March 9 issued under the Essential Commodities Act and the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999.
The revised order of March 9 directs all domestic and SEZ refineries and petrochemical complexes to ensure that the entire production is utilised for the production of LPG and made available to the three Public sector oil marketing companies. The order bars diversion of those streams for petrochemical products.
On the same day, MoPNG notified the Natural Gas (Supply Regulation) Order, 2026, which prioritises sectors such as LPG production and domestic PNG.
The distributors submitted that they sent detailed representations on March 9 asking CPIL to reconsider its current export strategy and give priority to the domestic market.
They warned that diversion to exports was causing financial and operational strain as customers face delays and payments are held up.
CPIL, however, denied diverting supplies, stating that it is only fulfilling contractual obligations under an export strategy formed and negotiated well in advance. It contended that it is difficult to prioritise the domestic market amid the present deals for export at International market.