Bombay High Court has issued a notice to the Centre on a plea alleging that LPG exports are being prioritised despite domestic shortage, with a Division Bench of Justices Anil S Kilor and Raj D Wakode terming the matter “serious” and of grave importance.
A Division Bench of the Bombay High Court’s Nagpur Bench, comprising Justices Anil S. Kilor and Raj D. Wakode, issued notices to the Union government and Confidence Petroleum India Ltd. (CPIL) in response to a petition by six LPG dealers alleging that exports are being prioritised over domestic supply amid an acute LPG shortage.
Until the petition is finally resolved, the bench ordered CPIL to ensure that its storage and supply of LPG for domestic consumption comply with the Central government’s current policy.
The matter is scheduled for further hearing on March 17.
The petitioners M/s Omkar Sales and five other long-standing CPIL distributors say they are directly affected by what they describe as a “severely disrupted” LPG supply chain in Maharashtra’s Vidarbha region.
They attribute the disruption to recent tensions involving Iran, the US and other Middle Eastern suppliers, which they say have interrupted supplies of oil and other essentials and caused an unprecedented domestic LPG shortage.
The petition adds,
“This is causing widespread hardship to consumers across the country, particularly in the State of Maharashtra and the Vidarbha region,”
According to the dealers, they source 100% of their LPG from CPIL and are now unable to meet demand from households, hotels, small industries and commercial establishments in Nagpur and neighbouring districts.
They contend that CPIL has been directing substantial LPG volumes to international markets to take advantage of higher global prices, thereby exacerbating the domestic shortfall and harming ordinary consumers.
The petition references 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 March 9 revision requires all domestic and SEZ refineries and petrochemical complexes to allocate their entire production to LPG manufacturing and supply it to the three public sector oil marketing companies, prohibiting diversion to petrochemical products.
On the same day, MoPNG also notified the Natural Gas (Supply Regulation) Order, 2026, which gives priority to LPG production and domestic PNG.
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The dealers say they submitted detailed representations to CPIL on March 9, urging the company to rethink its export approach and prioritise the domestic market, warning that exports were causing financial and operational difficulties as customers faced delays and payments were held up.
CPIL has denied diverting supplies, asserting that it is honouring contractual obligations tied to an export strategy negotiated well in advance and that it cannot readily prioritise the domestic market given existing international deals.
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