Andhra Pradesh high court restrains Maharashtra firm from selling LPG in global market

VIJAYAWADA: The Andhra Pradesh high court has issued an interim direction restraining the sale of liquefied petroleum gas (LPG) in the international market. It also directed the Union govt to strictly enforce its March 5 directive, mandating domestically produced LPG be supplied only to Indian consumers.Justice Battu Devanand recently passed the interim order in a petition filed by two LPG dealership firms – Medha Himaja Shrii Enterprises and Nihansh Gas Agency – challenging the alleged diversion of LPG supplies by Confidence Petroleum India Ltd amidst a reported domestic shortage triggered by the US-Israel-Iran war. Both the petitioners are dealers of Confidence Petroleum which is a Nagpur-headquartered company dealing with the supply of LPG and CNG.Senior counsel O Manohar Reddy, appearing for the petitioners, pointed out that the Centre issued directions on March 5 asking oil refining companies to maximise the use of propane and butane streams for LPG production, and ensure that the gas is supplied exclusively through public sector oil marketing companies – IOC, HPCL and BPCL – for domestic consumption only. He said that Confidence Petroleum was acting contrary to these directions by diverting LPG to overseas markets to leverage increased prices.After hearing the submissions and taking note of reports on LPG shortages, Justice Devanand observed that permitting oil companies to sell LPG in the international market could cause "irreparable loss and hardships" to the public.Granting the interim relief, the court directed Confidence Petroleum to file its response, and posted the matter for further hearing to April 2.