Local authorities have sealed a unit of Bharat Petroleum Corporation Ltd at Manmad in north Maharashtra for non-payment of `export fee'.
The company said the unit provides petrol, diesel, kerosene and other petroleum products to the national capital and has moved the Bombay High Court praying for an immediate relief.
The Manmad Municipal Corporation sealed the unit for non-payment of Rs23 crore in export fee.
The vacation bench of the court, however, refused to pass any order without hearing the Manmad Municipal Corporation.
A division bench comprising Justices Ranjana Desai and Ashotosh Kumbhkoni asked BPCL to serve notice to the corporation and adjourned the hearing till tomorrow.
BPCL has storage tanks at Panewadi village, near Manmad from where the company supplies petroleum products to Delhi, Kota and Haryana apart from north and central parts of Maharashtra.
The move comes close on the heels of a government plan to comprehensive package for oil firms to deal with the impact of soaring global crude oil prices.
While soaring global crude prices have dealt a big blow on the profitability of the domestic oil marketing companies (OMCs) that sell below cost, the government has not allowed oil firms so far to raise retail fuel prices.