LPG crunch fuels diesel demand but costs spiral

Ludhiana: This is a critical time for Ludhiana. The West Asian turmoil has affected much of the world, including the local industry. A seemingly logistical issue, that of LPG shortage, has become an existential crisis. The industry finds itself caught in a time of transition, never a pleasant experience.

The obvious answer is transitioning to alternative energy sources, including diesel, but it is easier said than done. With commercial LPG hard to come by, the demand for diesel burners has spiked. Many units are now being forced to invest in alternative systems just to maintain basic operations, as the industry scrambles to transition to diesel and other fuels. With diesel back in the spotlight, diesel fired burners are both scarce and expensive, the price hike fuelled by demand surge. Weighed down by the baggage of fear and scarcity, industrial units are struggling to stay afloat.


"Besides the severe shortage of commercial LPG, the industry continues to face challenges due to rising input costs. It has become difficult to run the industry," said Gurmeet Singh Kular, president, Federation of Industrial and Commercial Organisations (FICO). Pointing to the sharp escalation in costs, Kular said diesel burners, which were previously available for around Rs 35,000, are now being sold for nearly Rs 1 lakh.

"I booked a diesel burner for a certain price, but when it was not delivered despite payment, I was told that the price had increased to Rs 1 lakh," he said, indicating the volatility and supply-demand mismatch in the market.

Ashpreet Singh Sahni, former chairman of the CII, Ludhiana chapter, said though the industry has to pull through this difficult phase, transitioning to diesel comes with challenges, such as price escalation of what presently looks like the most viable alternative. "The industry is facing an uphill path because of shortage of commercial LPG and increase in the cost of fuels like furnace oil, which is no longer available, even at inflated prices," said K K Garg, president of the Induction Furnace Association of North India.

There are calls for urgent govt intervention to restore supply of commercial LPG cylinders. As the situation continues, the industry remains under strain, trying to balance rising costs with operational sustainability, with stakeholders hoping for immediate relief and long-term solutions to avoid such disruptions in future.

Industrialists have called out the vulnerability of the industry because of dependence on oil and pointed to the need to address the situation urgently, while making a policy to ensure self-sufficiency. "This crisis is a wake up call for the govt. There is an urgent need to take immediate steps for self sufficiency and build infrastructure around renewable sources of energy. It is very strange that we are so dependent on foreign fuel. The disruption has caused a crisis in the country. It's time we, as a society, worked on gaining self-sufficiency for energy sources at the individual, industrial and social level," an industrialist said.

The Crisis At Hand

Shortage of commercial LPG has disrupted operations across Ludhiana's industrial sector

Industries are being forced to shift to alternative fuels, mainly diesel, to keep units running

Demand surge has pushed diesel burner prices from about Rs 35,000 to nearly Rs 1 lakh

Supply-demand mismatch has led to volatility, with delayed deliveries and sudden price hikes

Rising fuel and input costs are adding to the financial stress on already strained units

Industry bodies have sought urgent govt intervention to restore LPG supply and prevent future disruptions'

Solutions Suggested By Stakeholders

Energy self-sufficiency: Industrialists have urged the govt to frame policies aimed at reducing dependence on imported fuels

Shift to renewable energy: Call to build infrastructure around renewable sources of energy at individual, industrial and social levels

Policy intervention: Industry has sought long-term fuel security planning to avoid disruptions caused by global geopolitical events

Diversification of energy mix: Reducing over-reliance on oil-based fuels by promoting alternative and sustainable energy options

Infrastructure development: Investment in systems and support mechanisms that enable smoother transition away from fossil fuels