Nagpur, Mar 12 (PTI) The Bombay High Court on Thursday issued notices to the Union petroleum and natural gas ministry as well as a private firm in connection with a petition filed by six LPG distributors seeking increased supply of domestic cooking gas cylinders amid the energy crisis due to the Iran war.
The petitioners claimed Nagpur-headquartered Confidence Petroleum India Ltd had failed to augment the supply of household LPG cylinders despite the Centre’s directive prioritising domestic distribution.
The petition, filed through advocates Shyam Dewani and Saahil Dewani, claimed the Iran war had caused disruptions in global crude supply, leading to constraints in LPG production, following which the Ministry of Petroleum and Natural Gas had issued orders directing that LPG production and supply for domestic consumers be given priority.
The plea said repeated representations to the company seeking a halt to LPG exports and an increase in supply to the domestic market had not been acted upon. Confidence Petroleum India Limited had informed them that the firm cannot prioritize supply in the domestic market as it has to cater to the international market as per its export strategy, the petitioners claimed.
Justices Anil S Kilor and Raj D Wakode of the Nagpur bench of the HC, while hearing the petition on Thursday, issued notices to Ministry of Petroleum and Natural Gas (MoPNG), Director General of Foreign Trade (DGFT) and Confidence Petroleum India Limited, which is returnable on Monday.
The HC bench said, in the interim, the government’s policy of prioritising the supply of domestic LPG cylinders must be strictly followed.
The petition said the six distributors procure LPG from Confidence Petroleum India Limited and subsequently supply the same to its customers, including households, hotels, small industries, and commercial establishments in Nagpur and other districts of Maharashtra.
The petitioner said the Ministry of Petroleum and Natural Gas (MoPNG) is responsible for forming policies, issuing directions with respect to petroleum products, including LPG, while responded number 2 – Directorate General of Foreign Trade (DGFT) is responsible for issuing directions on export prohibitions, restrictions and other necessary directions with respect to trade policies.
The petitioners have urged HC to issue orders to Confidence Petroleum India Limited to prioritize supply of LPG in the domestic market and prohibit export of LPG till the time the domestic markets stabilize. The plea also urged the HC to direct the petroleum ministry to make available adequate quantity of LPG for domestic consumption.
Meanwhile, Confidence Petroleum India Limited chairperson Nitin Khara said the firm is deliberating on unloading its LPG vessel in India as against the original plan of export after unloading some proportion domestically.
Speaking to a regional news channel, he said his firm will be filing its reply in the HC soon.
Many dealers have a doubt that the the firm’s LPG vessel, which has arrived in Jaigard port in Ratnagiri, would be exported, so they requested the firm and also approached HC seeking that the entire vessel be unloaded in India, Khara said.
“We are committed to the people of India. We were not expecting this situation to arise and we had given some export commitment. But, now the management is thinking of unloading the entire vessel in India. A decision on this would be taken soon,” he said, adding that its two LPG vessels, of 11,200 metric tonne and 11,500 metric tonnes capacities, are stuck in the Strait of Hormuz.
“One more LPG vessel that was supposed to go to Malaysia for export has arrived in India. The Maharashtra government has ordered us to empty the entire vessel in India itself. Our management is discussing how the entire vessel can be utilised domestically,” Khara added.
He said the situation due to the Middle East crisis had left customers worried, with many hotels on the verge of shutting down in Mumbai and Bengaluru.
“We are trying to ensure our cylinders reach them. We have requested them to use two cylinders in place of six so that at least the business continues to operate. Today we booked one more vessel of about 14000 metric tonne from USA but it takes 28 days for it to reach here. It will reach India by mid April,” Khara said. PTI CLS BNM
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