LPG Supply Disruption Likely Due To Logistics Issues, Not Shortage: Indian Industries Association

· Free Press Journal

Lucknow: The Indian Industries Association (IIA) on Sunday said the recent disruption in LPG and industrial gas supply affecting certain manufacturing activities appears to be a logistics and supply chain issue rather than an actual shortage of gas.

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The association said it has taken note of concerns raised by several micro, small and medium enterprises (MSMEs) regarding the impact of the supply disruption on production in some sectors.

IIA national president Dinesh Goyal said the situation is expected to stabilise in the coming days with coordination and intervention by the Government of India and the concerned supply agencies.

“The present situation appears to be more of a logistics and supply chain issue rather than an actual shortage of gas,” Goyal said, adding that the association is closely monitoring the developments.

He said the association has not yet received confirmed data on the number of industrial units that may have temporarily shut down due to the disruption. However, IIA has invited its members across the country to report any operational difficulties, production disruptions or temporary closures arising from the gas supply problem.

The association said the information will help it prepare a consolidated representation if required.

IIA also said it has started working on long-term solutions to reduce dependency on gas-based industrial processes. In this direction, the association has initiated consultations with technical institutions including IIT Roorkee, IIT (BHU) Varanasi and IIT (Indian School of Mines) Dhanbad.

The consultations aim to explore technologies that can help reduce industrial gas consumption, identify alternative energy options for MSME manufacturing processes and develop more cost-effective and sustainable production systems.

Goyal said gas shortages often draw immediate public attention as they directly affect household kitchens, but industries that depend on gas for furnaces, heating systems and processing units are also significantly affected.

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According to the association, sectors that have reported operational challenges include packaging material manufacturing, plastic component and extrusion units, auto parts manufacturing, machinery fabrication units, engineering workshops, bakery units producing biscuits and buns, and glass and bangle casting units, particularly in Firozabad.

IIA added that electric alternatives such as induction-based furnaces and heating systems could offer partial solutions for some industrial processes, although their feasibility would depend on technical suitability and power costs.

The association said it will continue to remain in touch with stakeholders to ensure that industrial production and MSME operations are not severely disrupted.

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