VIJAYAWADA: In view of the ongoing LPG shortage across the country, the Andhra Pradesh High Court has issued key directions prohibiting oil refining companies from selling LPG in the international market.
The court made it clear that during a period of domestic shortage, exporting LPG at higher prices would severely impact common consumers. It directed that LPG should be supplied only to distributors for domestic consumption.
Hearing a petition filed by gas agency owners from Vijayawada, the court issued notices to the Union Ministry of Petroleum and Natural Gas and Confidence Petroleum India Limited, asking them to file counters. The matter has been posted for further hearing on April 2.
The petitioners alleged that despite a shortage triggered by the ongoing conflict in West Asia, the company was selling LPG in the international market at higher prices instead of supplying it domestically. They sought directions to restrain such practices.
During the hearing, senior counsel O Manohar Reddy representing the petitioners informed the court that there is a significant gap between demand and supply of LPG both globally and domestically due to the war situation.
He pointed out that the Centre had already issued orders on March 5 directing that propane and butane stocks be utilised to maximise LPG production and that the output be supplied to public sector oil companies such as Indian Oil Corporation, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited for distribution to domestic consumers only.
However, it was alleged that Confidence Petroleum India Limited was ignoring these directions and diverting LPG to international markets for higher profits.
Justice Battu Devanand passed interim orders directing strict implementation of the Centre’s earlier guidelines.