Centre Assures Steps To Tackle LPG Crisis, Court Closes Plea By Distributors

Solicitor General Tushar Mehta informed the Nagpur bench of the Bombay High Court that negotiations were underway internationally to stabilise supply.

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The petition was filed by six LPG distributors.

The Union government on Tuesday told the Nagpur bench of the Bombay High Court that it is taking "remedial measures" at the diplomatic level to address disruptions in Liquefied Petroleum Gas (LPG) supply arising from the ongoing Iran-Israel conflict and urged the court to repose trust in its efforts.

Appearing before a Division Bench of Justices Anil S Kilor and Raj D Wakode, Solicitor General Tushar Mehta submitted that negotiations were underway internationally to stabilise supply, though specific steps could not be disclosed due to their sensitive nature. He emphasised that the government was "doing its best" to ensure that domestic availability is not adversely impacted.

Taking note of these submissions, the bench closed a petition filed by six LPG distributors, including Omkar Sales, who had alleged that exports were being prioritised over domestic supply.

The matter had earlier drawn sharp concern, with the court describing the issue as "serious" and of "grave importance" while issuing notices to the Centre, the Ministry of Petroleum and Natural Gas, and Confidence Petroleum India Ltd (CPIL).  

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The petitioners, all distributors dependent on CPIL, contended that supply chains in Maharashtra's Vidarbha region had been "severely disrupted" due to geopolitical tensions in the Middle East, leading to an LPG crisis.

They alleged that despite government directives prioritising household consumption, significant quantities of LPG were being diverted for export to take advantage of high global prices, thereby worsening the crisis for domestic consumers.  

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The plea relied on recent government orders issued in early March under the Essential Commodities Act and related regulations, mandating that LPG production be channelled primarily towards domestic consumption and public sector oil marketing companies.  

The petitioners argued that continued exports were contrary to these directives and the Natural Gas (Supply Regulation) Order, 2026, which prioritises household supply during crises.  

CPIL, however, denied any diversion, maintaining that it was honouring pre-existing export commitments and had not violated policy norms.  

On Tuesday, the Centre sought closure of the proceedings, stressing that macro-level supply issues linked to global disruptions were being actively handled through diplomatic channels. It also indicated that any localised concerns could be addressed by state authorities.

Accepting these assurances, the bench disposed of the petition.

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