Andhra Pradesh High Court restrains Confidence Petroleum India from selling LPG to international market

The Andhra Pradesh High Court on March 13 restrained Nagpur-based Confidence Petroleum India from selling Liquified Petroleum Gas (LPG) outside India amid fuel shortages caused by the ongoing US-Israel war with Iran [Medha Himaja Shrii Enterprises v. Union of India].

Justice Battu Devanand passed the order on a petition moved by Medha Himaja Shrii Enterprises and Nihansh Gas Agency, who said that they procure LPG from the private company and then supply it to consumers in India.

The Court took note of a recent Central government order asking oil refining companies in India to maximise LPG production and ensure that propane and butane streams available with them are utilised for production of LPG and made available to the three public sector oil marketing companies.

"In the meanwhile, taking into consideration of the directions issued by the Government of India, in its order, dated 05.03.2026 and the grievance put forth before this Court by the learned Senior Counsel appearing for the petitioners and also keeping in mind the news articles published in the print and electronic media that there is serious scarcity of L.P.G. in the country, we are of the prima facie view that if the oil refining companies operating in India are permitted or allowed to sell L.P.G. at international market, it would cause irreparable loss and hardships to the public at large in our country," the Court said.

The Court directed the Union government to ensure strict compliance of its recent order on maximising LPG production in India.

"In view of the same, there shall be interim direction, as prayed for," the Court added.

The petitioners had sought a direction to restrain the private company from selling LPG sale to the international market so that the distributors in India can supply the same to the Indian market.

It was submitted that the ongoing West Asia conflict has created a huge gap between demand and supply of oil and LPG in the global as well as domestic markets.

The petitioners alleged that Confidence Petroleum India was taking advantage of the present situation and selling LPG in the international market at inflated rates only to make personal gains, contrary to the directions of the Government of India.

Seeking a response from Confidence Petroleum India, the Court said that the company's stand on the allegations will be considered after serving notice to them. In the meantime, the Court passed an interim order against it.

The matter will heard next on April 2.

Senior Advocate O Manohar Reddy appeared for the petitioners.

Advocate Arun Showri appeared for the Union.

In a related development, the Bombay High Court on March 17 closed a petition against Confidence Petroleum India after the Central government said it was taking remedial measures to deal with the crisis.

"Considering the fact that, the aforesaid situation has arisen due to ongoing conflict between the United States/Israel and Iran, we are of the opinion that, such situation warrants high degree of judicial restraint and caution by the Court. During the time of conflict, the Court should not interfere with discretionary powers exercised by the executives in good faith," the Court said.

[Read Order]