Amid LPG crunch, Bombay HC issues notice to Centre on PIL alleging CPIL prioritising exports over domestic supply

The Bombay High Court has issued a notice to the Government of India and Confidence Petroleum India Ltd (CPIL) after a plea filed by six LPG dealers, claiming that exports of the cooking gas are being prioritized over domestic supply despite the shortage.

A Division Bench of Justices Anil S Kilor and Raj D Wakode of the Nagpur bench of Bombay High Court called the matter a “serious” issue of grave importance.

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The court also directed the CPIL to ensure the supply of LPG to domestic consumers in line with the Central government’s policy. The bench posted the matter for further hearing on March 17.

In the petition, the LPG dealers said that LPG supply has been “severely disrupted” in Maharashtra’s Vidarbha region and that they are bearing the direct consequences.

They said that the conflict in the Middle East between the US and Iran has disrupted the oil and other essential commodity supply chains, leading to an acute shortage of domestic supplies.

“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 stated that they procured 100 per cent of their LPG from the CPIL but are unable to meet the requirements of consumers, alleging that the agency 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 cited Ministry of Petroleum and Natural Gas (MoPNG) orders issued on March 5 and March 9 under the Essential Commodities Act and the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999.

The development comes amid the ongoing energy crisis following Iran’s closure of the Strait of Hormuz, a key shipping route.