Bombay HC seeks Centre's response on LPG cylinder supply shortage plea

The Nagpur Bench of the Bombay High Court has sought the Centre's response on a plea by LPG distributors alleging shortages in the supply of domestic cooking gas cylinders

The Nagpur Bench of the Bombay High Court on Thursday sought a response from the Union government, the Ministry of Petroleum and Natural Gas, and Confidence Petroleum India Limited on a petition by six distributors alleging a shortage in the supply of domestic LPG (liquefied petroleum gas) cylinders. 

A Division Bench of Justice Anil S Kilor and Justice Raj D Wakode passed the order while hearing a plea by six LPG distributors associated with Confidence Petroleum India Limited, seeking directions for increased allocation of household cooking gas cylinders. The matter has been listed for further hearing on Monday. 

Pending further consideration, the Bench directed that the storage and distribution of domestic LPG cylinders must strictly adhere to the policy framework laid down by the Central government. 

 

According to the petitioners, the company had failed to increase the supply of domestic cylinders despite policy directions issued by the Ministry of Petroleum and Natural Gas prioritising LPG availability for household consumption.

 

The distributors claimed that several representations were made requesting the company to suspend LPG exports and divert production to the domestic market, but no effective steps were taken.

 

The distributors attributed the supply disruption to the ongoing Iran-Israel-US conflict, which they said has affected the global crude oil supply chain and slowed the movement of crude oil from major producing countries such as Saudi Arabia, the United Arab Emirates and Syria, thereby impacting LPG production and supply.

 

The conflict in West Asia has also disrupted energy flows through the Strait of Hormuz, a key maritime route through which a significant share of global oil and gas supplies move and on which India relies heavily for its energy imports.

 

Amid rising concerns over energy supply disruptions linked to tensions in West Asia and the blockade of the Strait of Hormuz, the Union government this week invoked the Essential Commodities Act, 1955, to regulate the supply of natural gas in the country.

 

Exercising powers under the law, the Ministry of Petroleum and Natural Gas issued the Natural Gas (Supply Regulation) Order, 2026, providing that sectors directly affecting large sections of consumers will receive priority in natural gas allocation.

 

Accordingly, piped natural gas supplied to households, compressed natural gas used in vehicles, and natural gas required for LPG production have been placed ahead of other industrial uses. India currently meets about half of its natural gas demand, estimated at around 190 million standard cubic metres per day, through LNG imports, more than 50 per cent of which originate from West Asian producers such as Qatar and the United Arab Emirates.

 

India is also heavily reliant on overseas LPG supplies, importing nearly 60 per cent of its requirement, with about 80 per cent of shipments transiting through the Strait of Hormuz, making the route crucial for the country’s energy security.