HC Seeks Centre’s Reply On LPG Export Amid Domestic Supply Crunch

Nagpur: The Nagpur bench of Bombay High Court on Thursday sought responses from the Centre, the Directorate General of Foreign Trade (DGFT), and Confidence Petroleum India Ltd on a petition alleging domestic LPG supply was being neglected, despite govt directions prioritising household consumption over exports.A division bench comprising Justices Anil Kilor and Raj Wakode issued notices to the respondents, while hearing a plea filed by 6 LPG distributors, who contended that continued LPG export during a crisis runs contrary to the Natural Gas (Supply Regulation) Order, 2026, mandating prioritisation of household supply.

While adjourning the hearing till March 17, the bench directed the respondents to file their replies before the next hearing on March 17. Counsel Mugdha Chandurkar, appearing along with deputy solicitor general Kartik Shukul, accepted the notice on behalf of the Union govt and DGFT.





Observing that the matter raised public concerns, the court recorded "the issue is of a serious nature and of grave importance" and asked the Central authorities to place their response before the next hearing.

In an interim direction, the court instructed 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 govt.

The petitioners, through counsel Shyam and Sahil Dwani, approached the court after alleging that their repeated requests to the company to increase domestic supply went unanswered, despite official orders prioritising household LPG distribution.

According to the plea, the Union govt issued an order (March 9) imposing restrictions on export of essential commodities and directing that LPG supply be prioritised for domestic markets amid a tightening supply situation.

The distributors claimed the 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, the petitioners alleged Confidence Petroleum informed them it could not prioritise domestic supply because it had obligations under its international export strategy.

The distributors asked the court to ensure strict implementation of the govt's policy and to direct the company to prioritise LPG supply to domestic markets until conditions stabilise.

Key takeaways from HC verdict:

Issued notices to Union of India, DGFT & Confidence Petroleum over alleged LPG supply dispute

6 LPG distributors, including M/s Omkar Sales, filed the writ seeking increased domestic LPG supply

Petitioners alleged company continued LPG exports despite a shortage in domestic markets

Centre issued an order on March 9 prioritising domestic LPG supply and restricting export of essential commodities

Distributors claimed company refused to prioritise domestic supply due to its international export commitments.

Court ordered that LPG storage & supply must follow Centre's prevailing policy

Petitioners seek strict enforcement of govt directives prioritising domestic LPG distribution.

The matter is scheduled for further hearing on March 17, 2026.