Ludhiana: Manufacturers fleeing the gas crisis are finding no relief in alternative fuels. A crippling shortage of commercial liquefied petroleum gas (LPG) is forcing factory closures in northern India and threatening a total collapse of the automotive supply chain.As gas cylinders vanish from the market, manufacturers are scrambling to retro-fit plants for diesel and furnace oil — only to be met by a surging black market and skyrocketing energy costs that experts warn will soon double the price of consumer goods.Factories Fall SilentThe sudden supply disruption has paralysed operations across key manufacturing sectors. Industry leaders report that many units have already ceased production, while those remaining open are operating on borrowed time. “Many factories have closed because commercial gas cylinders are not available at all,” said Raminderpal Singh, a steel and iron rolling mill owner in Dhandari Kalan. He warned that if the shortage persists, vital sectors including automotive manufacturing face a total shutdown.The Costly Retreat from Green EnergyThe crisis is forcing a regressive shift in industrial energy use. Over the last several years, hundreds of factories transitioned to LPG, favored for being cleaner (lowering the carbon footprint of heavy manufacturing), efficient (providing consistent heat for industrial furnaces), and economical (Offering stable pricing compared with volatile liquid fuels).Now, that progress is being undone. “Factories are closed and many others are struggling to continue operations,” said K K Garg, president of the Induction Furnace Association of North India. “Some units are trying to convert to diesel or furnace oil, but the transition is neither easy nor quick.”Black Market PressuresFor those attempting to pivot back to traditional fuels, the financial barrier is immense. Converting systems from gas to oil requires expensive technical modifications and significant downtime. Compounding the issue is a sharp spike in the price of furnace oil from Rs 40-45 for each litre to the current market rate of Rs 60. The black market rate is up to Rs 65/l.The Consumer FalloutThe industrial sector warns that the govt’s failure to secure LPG supplies will have a direct impact on the public’s wallet. Because the cost of switching to alternative fuels is so high, the financial burden will inevitably be passed down the chain. “Nobody is taking stock of the situation the industry is facing,” Garg said. “If the industry shifts to these fuels, the cost of production would almost double.”
