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        Customs & Trade

        LPG distributors approach Bombay HC against supply crunch; notices issued to Centre, pvt firm

        March 12, 2026

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        Nagpur, Mar 12 (PTI) The Bombay High Court on Thursday issued notices to the Union petroleum and natural gas ministry as well as a private firm in connection with a petition filed by six LPG distributors seeking increased supply of domestic cooking gas cylinders amid the energy crisis due to the Iran war.

        The petitioners claimed Nagpur-headquartered Confidence Petroleum India Ltd had failed to augment the supply of household LPG cylinders despite the Centre's directive prioritising domestic distribution.

        The petition, filed through advocates Shyam Dewani and Saahil Dewani, claimed the Iran war had caused disruptions in global crude supply, leading to constraints in LPG production, following which the Ministry of Petroleum and Natural Gas had issued orders directing that LPG production and supply for domestic consumers be given priority.

        The plea said repeated representations to the company seeking a halt to LPG exports and an increase in supply to the domestic market had not been acted upon. Confidence Petroleum India Limited had informed them that the firm cannot prioritize supply in the domestic market as it has to cater to the international market as per its export strategy, the petitioners claimed.

        Justices Anil S Kilor and Raj D Wakode of the Nagpur bench of the HC, while hearing the petition on Thursday, issued notices to Ministry of Petroleum and Natural Gas (MoPNG), Director General of Foreign Trade (DGFT) and Confidence Petroleum India Limited, which is returnable on Monday.

        The HC bench said, in the interim, the government's policy of prioritising the supply of domestic LPG cylinders must be strictly followed.

        The petition said the six distributors procure LPG from Confidence Petroleum India Limited and subsequently supply the same to its customers, including households, hotels, small industries, and commercial establishments in Nagpur and other districts of Maharashtra.

        The petitioner said the Ministry of Petroleum and Natural Gas (MoPNG) is responsible for forming policies, issuing directions with respect to petroleum products, including LPG, while responded number 2 - Directorate General of Foreign Trade (DGFT) is responsible for issuing directions on export prohibitions, restrictions and other necessary directions with respect to trade policies.

        The petitioners have urged HC to issue orders to Confidence Petroleum India Limited to prioritize supply of LPG in the domestic market and prohibit export of LPG till the time the domestic markets stabilize. The plea also urged the HC to direct the petroleum ministry to make available adequate quantity of LPG for domestic consumption. PTI CLS BNM

        Priority supply of domestic LPG sought to enforce export restrictions and secure household allocations amid supply disruption. Six LPG distributors allege a supplier refused to reallocate LPG from export channels to the domestic market despite Ministry directions prioritising household supplies; they seek orders compelling the supplier to halt exports and increase domestic allocations, identifying the petroleum ministry as policy authority and the trade directorate as competent on export restrictions.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Priority supply of domestic LPG sought to enforce export restrictions and secure household allocations amid supply disruption.

                                Six LPG distributors allege a supplier refused to reallocate LPG from export channels to the domestic market despite Ministry directions prioritising household supplies; they seek orders compelling the supplier to halt exports and increase domestic allocations, identifying the petroleum ministry as policy authority and the trade directorate as competent on export restrictions.





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                                ActsIncome Tax
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