VIJAYAWADA: The Andhra Pradesh High Court has issued an interim order restraining a Maharashtra-based company from selling liquefied petroleum gas (LPG) in the international market, amid concerns over domestic shortages.
Justice Battu Devanand passed the order while hearing a petition filed by two LPG dealerships—Medha Himaja Shrii Enterprises and Nihansh Gas Agency—who alleged diversion of domestic LPG supplies by Confidence Petroleum India Ltd.
The court also directed the Union government to strictly enforce its March 5 directive, which mandates that domestically produced LPG be supplied only to Indian consumers.
Allegations of diversion
The petitioners, both dealers of Nagpur-headquartered Confidence Petroleum, claimed the company was diverting LPG to overseas markets to capitalise on higher global prices, even as domestic supply remained strained.
Senior counsel O Manohar Reddy, appearing for the petitioners, argued that the Centre had clearly instructed oil refining companies to maximise LPG production using propane and butane streams and ensure distribution exclusively through public sector oil marketing companies—Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Ltd (HPCL), and Bharat Petroleum Corporation Ltd (BPCL)—for domestic consumption.
Court’s observations
Taking note of reported LPG shortages, particularly in the context of global disruptions linked to the ongoing US-Israel-Iran conflict, the court observed that allowing companies to export LPG could result in “irreparable loss and hardship” to the public.
Granting interim relief, the court restrained Confidence Petroleum from selling LPG internationally and directed the company to file its response.
Next hearing
The matter has been posted for further hearing on April 2.
