The Nagpur Bench of the Bombay High Court issued notices to the Union government, the Ministry of Petroleum and Natural Gas, the Directorate General of Foreign Trade, and Confidence Petroleum India Limited while hearing a petition filed by six liquefied petroleum gas distributors seeking an increase in the supply of domestic cooking gas cylinders. The Court took note of the issues raised in the petition and directed the concerned authorities to respond to the allegations and concerns raised by the distributors regarding inadequate supply of LPG cylinders for domestic consumption. The Court observed that the matter raised serious concerns regarding the availability of LPG for household use and therefore required the attention and response of the relevant authorities.
The petition was filed by six distributors who procure LPG from Confidence Petroleum India Limited and distribute it to customers across Nagpur and other districts in Maharashtra. According to the petitioners, there has been an ongoing shortage of domestic LPG cylinders which has affected the supply of cooking gas to households and other consumers. The distributors alleged that despite government directives prioritizing the availability of LPG for domestic use, the supply of domestic cylinders had not been adequately increased. They argued that this shortage had created serious difficulties for distributors as well as consumers who rely on LPG for cooking and other household needs.
The distributors approached the High Court seeking directions to the authorities to ensure adequate availability of LPG cylinders for domestic consumption. They contended that the situation had worsened due to disruptions in global energy supply caused by geopolitical developments affecting crude oil and LPG production. These disruptions were stated to have had a direct impact on LPG supply chains, resulting in shortages in the domestic market.
According to the petition, the Ministry of Petroleum and Natural Gas had already issued policy directions emphasizing that domestic consumption of LPG must be given priority. The distributors argued that these directives required that LPG production and supply should first meet domestic demand before fulfilling export commitments. However, they claimed that despite these directions, the supply of LPG cylinders for domestic distribution had not been adequately increased.
The petitioners also alleged that Confidence Petroleum India Limited had failed to augment the supply of domestic LPG cylinders even after receiving repeated representations from the distributors. They claimed that the company had been informed of the shortage and had been requested to increase the supply of cylinders meant for domestic use. The distributors further alleged that the company had not taken sufficient steps to address the issue despite these requests.
Another grievance raised in the petition related to the continuation of LPG exports despite the domestic shortage. The distributors argued that during periods when domestic demand could not be adequately met, LPG exports should be halted or reduced to ensure that sufficient quantities are available for domestic consumption. They stated that requests had been made to halt exports temporarily so that the LPG available within the country could be redirected toward domestic supply. However, they claimed that these requests had not been acted upon.
The petitioners further contended that the continuation of LPG exports during a period of domestic shortage undermined government policy directives that prioritize household consumption. They argued that ensuring adequate supply of cooking gas for domestic users should take precedence over export commitments during times of supply disruption. According to the petition, the authorities responsible for regulating the production, distribution, and export of LPG should take immediate steps to enforce these priorities.
The petition also referred to the regulatory framework governing the supply and distribution of LPG in India. The distributors stated that the Ministry of Petroleum and Natural Gas is responsible for formulating policies and issuing directions relating to petroleum products including LPG. They also pointed out that the Directorate General of Foreign Trade has the authority to regulate exports and impose restrictions when necessary in order to safeguard domestic supply. The petitioners therefore sought directions from the Court requiring these authorities to ensure that adequate quantities of LPG are made available for domestic distribution.
During the hearing of the case, the High Court observed that the issues raised in the petition appeared to be serious and of considerable importance. The Court therefore directed the respondent authorities to file their replies addressing the concerns raised by the petitioners. The Court issued notices to the Union government, the Ministry of Petroleum and Natural Gas, the Directorate General of Foreign Trade, and Confidence Petroleum India Limited and asked them to respond before the next hearing of the case.
The Court also issued interim directions regarding the supply and storage of LPG for domestic consumption. It stated that the existing government policy prioritizing the supply of LPG for household use must be strictly followed. The Court directed that the storage and supply of LPG intended for domestic consumption should be carried out in accordance with the policy directives issued by the Ministry of Petroleum and Natural Gas.
The petition highlighted the operational challenges faced by LPG distributors in maintaining regular supply to consumers in the face of shortages. The distributors stated that their businesses depend on a stable supply of LPG cylinders from suppliers and producers. When the supply of cylinders falls short of demand, distributors are unable to meet the needs of their customers, leading to delays and difficulties for households and other users who rely on LPG as a primary source of cooking fuel.
The petition also noted that the distributors serve a wide range of customers including households, hotels, small industries, and commercial establishments. A disruption in LPG supply therefore affects not only domestic consumers but also other sectors that depend on LPG for their daily operations. The distributors argued that ensuring a stable and adequate supply of LPG is therefore necessary for both domestic consumption and economic activity.
According to the petitioners, they had made several representations to the supplier company and relevant authorities seeking intervention to address the shortage. These representations included requests to increase domestic supply and to reconsider export decisions during the period of shortage. The distributors claimed that despite these efforts, no effective steps had been taken to resolve the issue.
The petition therefore requested the High Court to direct the authorities to enforce the regulatory framework governing LPG supply and to ensure that domestic consumers receive adequate quantities of cooking gas. The distributors also sought directions requiring that LPG available within the country should first be allocated for domestic distribution until the supply situation stabilizes.
The Court scheduled the next hearing of the matter and directed the respondent authorities to submit their responses before that date. By issuing notices and interim directions, the Court indicated that the concerns raised in the petition required examination and clarification from the authorities responsible for regulating LPG production, supply, and export.
The proceedings before the High Court thus focus on the question of whether sufficient measures are being taken to ensure the availability of LPG cylinders for domestic consumption. The Court’s notice to the Union government and other authorities requires them to explain the steps taken to address the alleged shortage and to ensure that government policy prioritizing domestic supply is implemented effectively. The matter will be further considered by the Court after the respondents file their replies addressing the allegations and issues raised in the petition.
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