Nagpur High Court Demands Answers on LPG Export Amid Domestic Supply Crisis
The Nagpur bench of the Bombay High Court has taken a firm stance on a critical issue affecting household energy security. On Thursday, the court issued formal notices to the Central government, the Directorate General of Foreign Trade (DGFT), and Confidence Petroleum India Ltd, seeking their responses to a petition that alleges domestic LPG supply is being neglected.
Petition Alleges Violation of Government Directives
A division bench comprising Justices Anil Kilor and Raj Wakode heard the plea filed by six LPG distributors, who argued that continued LPG exports during a domestic crisis directly contradicts the Natural Gas (Supply Regulation) Order, 2026. This order explicitly mandates the prioritization of household LPG supply over exports to ensure adequate availability for consumers.
The petitioners, represented by counsel Shyam and Sahil Dwani, approached the court after their repeated requests to Confidence Petroleum to increase domestic supply went unanswered. They cited a Union government order issued on March 9, which imposed restrictions on the export of essential commodities and directed that LPG supply be prioritized for domestic markets amid tightening supply conditions.
Court Recognizes Serious Public Concern
Observing that the matter raises significant public concerns, the court recorded that "the issue is of a serious nature and of grave importance." The bench directed the Central authorities to place their detailed response before the next hearing, scheduled for March 17, 2026.
In an interim direction, the court instructed the respondents, particularly Confidence Petroleum, to ensure that "storage and supply of LPG for domestic consumption shall be in accordance with the prevailing policy" of the Union government. This directive aims to prevent further neglect of household needs while the legal proceedings continue.
Distributors Highlight Export Commitments as Barrier
According to the petition, the distributors claimed that the government order was issued to control a growing shortage of LPG and other essential commodities in the market, especially as demand surged in recent weeks. However, they alleged that Confidence Petroleum informed them it could not prioritize domestic supply due to obligations under its international export strategy.
The petitioners, including M/s Omkar Sales, are seeking strict implementation of the government's policy and a court order directing the company to prioritize LPG supply to domestic markets until conditions stabilize. They argue that this is essential to prevent hardship for households relying on LPG for cooking and heating.
Legal Proceedings and Next Steps
Counsel Mugdha Chandurkar, appearing along with deputy solicitor general Kartik Shukul, accepted the notice on behalf of the Union government and DGFT. The court has adjourned the hearing until March 17, 2026, with directions for all respondents to file their replies before that date.
Key takeaways from the High Court proceedings:
- Notices issued to the Union of India, DGFT, and Confidence Petroleum over the alleged LPG supply dispute.
- Six LPG distributors filed the writ petition seeking increased domestic LPG supply.
- Petitioners allege the company continued LPG exports despite a shortage in domestic markets.
- The Centre issued an order on March 9 prioritizing domestic LPG supply and restricting export of essential commodities.
- Distributors claimed the company refused to prioritize domestic supply due to international export commitments.
- Court ordered that LPG storage and supply must follow the Centre's prevailing policy.
- Petitioners seek strict enforcement of government directives prioritizing domestic LPG distribution.
The matter remains under judicial scrutiny, with the next hearing set for March 17, 2026, where the responses from the Centre, DGFT, and Confidence Petroleum will be crucial in determining the future of domestic LPG supply prioritization.
