Bombay High Court Addresses LPG Supply Crisis Amid Export Prioritization
Court Seeks Government Response on LPG Supply Issues
On Thursday, the Nagpur bench of the Bombay High Court requested responses from the central government and a private company regarding a petition filed by six liquefied petroleum gas (LPG) distributors. They are advocating for an increase in the supply of domestic cooking gas cylinders.
A division bench, comprising Justices Anil S Kilor and Raj D Wakode, emphasized the seriousness of the issue at hand.
The petitioners contend that the prioritization of LPG exports over domestic supply is exacerbating the shortage, a situation worsened by the ongoing energy crisis linked to the conflict in West Asia. They specifically pointed out that Confidence Petroleum India Limited, based in Nagpur, has not increased the supply of household LPG cylinders, despite directives from the Union government to prioritize domestic distribution.
The petitioners expressed that they are experiencing significant challenges due to a 'severely disrupted' LPG supply chain in the Vidarbha region of Maharashtra.
According to the petition, this disruption is causing considerable hardship for consumers nationwide, particularly in Maharashtra and the Vidarbha area.
They referenced a directive from the Ministry of Petroleum and Natural Gas issued on March 9, which instructed all refineries and petrochemical facilities to maximize their production capacity for LPG, ensuring availability for public sector oil marketing companies.
The court instructed Confidence Petroleum to align its storage and distribution of LPG for domestic use with the government's policy.
The case is scheduled for a follow-up hearing on Tuesday.
Nitin Khara, Chairperson of Confidence Petroleum, mentioned that the company is contemplating unloading its LPG vessel in India instead of exporting part of the shipment after domestic distribution. He indicated that the firm would soon submit its response to the High Court.
Khara expressed a commitment to the Indian populace, stating, 'We did not anticipate this situation, and we had made some export commitments. However, the management is now considering unloading the entire vessel in India.'
Impact of West Asia Conflict on LPG Supply
Since the onset of the conflict in West Asia on February 28, India's LPG supply has faced disruptions, as the country relies on imports for approximately 60% of its LPG needs, primarily from Gulf nations. This situation has been aggravated by Iran's blockade of the vital Strait of Hormuz for most international commercial vessels.
Despite these challenges, Union Minister for Petroleum and Natural Gas Hardeep Singh Puri assured Parliament on Thursday that there is no fuel shortage, attributing reports of scarcity to hoarding and panic-buying driven by consumer anxiety rather than actual supply issues.
On the same day, Prime Minister Narendra Modi urged state governments to enhance monitoring efforts to prevent black-marketing and hoarding in response to the crisis.
Congress leader Rahul Gandhi criticized the government's handling of the situation, claiming that India's energy security has been compromised due to what he termed a 'flawed foreign policy.'