Dec 31, 2021

CCI Dismisses the Information filed against Hindustan Petroleum Corporation Limited and Ministry of Petroleum & Natural Gas under Section 26(2) of the Act

On November 17, 2021, CCI dismissed an information filed by Ms. Sanyogita Singh (‘Informant’) alleging contravention of Sections 3 and 4 of the Act by Hindustan Petroleum Corporation Limited (‘HPCL’). HPCL issued a tender seeking trucks to transport cylinders for liquefied petroleum gas (‘LPG’) cylinders of different capacities from its Loni bottling plant.[1] The Informant was primarily aggrieved by HPCL selecting Indane gas transporters as the L-1 bidder for its tender without considering Hindustan Petroleum (‘HP’) distributors/dealers gas transporters.

CCI noted that the Informant did not provide any information regarding HPCL’s dominance in the relevant market. However, based on the Informant’s allegations, CCI identified the relevant product market as ‘procurement of service of transportation of packed LPG cylinders by road’. Further, since the tender conditions allowed truck owners with required qualifications to participate from all over India, CCI considered the relevant geographic market as the whole of India. Accordingly, CCI delineated the relevant market as ‘procurement of service of transportation of packed LPG cylinders by road in India’. CCI did not find HPCL dominant in the relevant market because of factors including the number of bottling plants of competitors, presence of three other public sector undertakings as suppliers, and HPCL’s market share.

CCI also observed that the Informant’s allegation effectively seeking preferential treatment for HPCL gas distributors with respect to the procured services ‘is antithetical to the very norms and spirit of competition law’.

CCI also rejected the allegation of contravention of Section 3 of the Act as the Informant failed to provide any details i.e., cartel participants, modus operandi, details of operations in support of its allegation of cartelisation by HPCL.

Accordingly, CCI closed the matter under Section 26(2) of the Act.


[1] Ms. Sanyogita Singh v. Hindustan Petroleum Corporation Limited & Others, Case No. 33 of 2021.




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