LPG Distribution Dispute: The Bombay High Court Nagpur Bench on Thursday issued notices to the Government of India, the Ministry of Petroleum & Natural Gas, and Confidence Petroleum India Limited on a petition by a group of LPG distributors claiming that the supply of domestic gas cylinders has fallen below the requisite levels. The petition comes on the back of disruptions to the energy supply chain due to the ongoing conflict between Israel and Iran.
LPG Shortage Crisis: What Did the Court Say During the Hearing?
The case was heard by a bench consisting of Justice Anil S Kilor and Justice Raj D Wakode, who issued notices to the concerned authorities, and the matter will be heard again on Monday. In its interim order, the court directed that the storage and distribution of domestic LPG cylinders must strictly adhere to the policies laid out by the government.
Why Did LPG Distributors Move the Court?
The petition was filed by the distributors of LPG associated with Confidence Petroleum India Limited. They sought a direction to enhance the supply of LPG cylinders used for household purposes.
The petition stated that despite the Ministry of Petroleum and Natural Gas issuing a directive to enhance the supply of LPG to domestic consumers, the company still did not enhance the supply of cylinders to the local market.
The petitioners stated that they have repeatedly sent a request to the company to stop the export of LPG cylinders and enhance the supply to the local market. However, their request was not being considered.
How Has the Iran–Israel Conflict Affected LPG Supply?
The distributors claimed that the current conflict between Iran and Israel has affected the crude oil supply chain globally. The conflict has slowed down the movement of crude oil from major crude oil-producing countries, including Saudi Arabia, the UAE, and Syria.
This has caused a problem for the production and supply of LPG, which has affected the supply of domestic cooking gas cylinders in the country.
In view of the prevailing situation, the Ministry of Petroleum and Natural Gas had allegedly issued a directive that the production of LPG was to be used for domestic purposes only.
LPG Distribution Row: Petition Filed Through Legal Representatives
The distributors have approached the Nagpur bench of the Bombay High Court through their advocates Shyam Dewani and Saahil Dewani. The court will now analyze the response of the Union government, the ministry, and the company in the next hearing to give further directions on the supply of LPG.
