Pune’s small industries bear brunt as LPG supply shrinks amid West Asia crisis

For these units, switching to an alternative fuel source or method is not a viable option. “Unlike restaurants or hotels, which are also facing the brunt, may survive a temporary closure, but small manufacturers cannot afford to miss deadlines. We have orders from Original equipment manufacturers (OEMs) and large industries. If we fail to deliver on time, we risk losing future orders,” Belsare said.

The automotive components sector, a backbone of Pune’s industrial economy, has been among the first to feel the pressure. Dilip Batwal, CEO of the Federation of Chakan Industries, said industries involved in industrial painting and quick-drying ovens are heavily dependent on LPG. “Pimpri Chinchwad is an automotive hub. Several industries here use LPG-fired ovens for painting automotive components, and they are the first to be hit.”

He said the industrial LPG supply had effectively stopped three to four days ago, triggering a wave of production cuts. “If the situation does not improve by the end of this week, many small and medium manufacturers will be forced to halt operations entirely. That will eventually choke the supply chain and hurt large industries too,” he added.

On the ground, some businesses are already improvising, at a cost. Akshay Jadhav, owner of Sahara Engineers in PCMC, runs a fabrication unit that has been without LPG supply for nearly a week. He has shifted to plasma cutting, which runs on electricity and compressed air.

“It is more expensive than LPG, but we had no choice,” he said. The labour crunch during Ramzan has added to the strain. Jadhav drew a parallel with the Covid-19 pandemic, when a sudden disruption in industrial oxygen supply forced many units to make the same switch. “I fear this could repeat itself if LPG supply remains suspended for long,” he said, adding that smaller units, without the capital or infrastructure to pivot, will be the hardest hit. “There are many families whose livelihoods depend on small and medium industries in Pune. Their survival is also at stake.”

Why is LPG supply hit?

India imports around 62 per cent of its annual LPG requirement of 31.3 million tonnes, and a significant share of these imports moves through the Strait of Hormuz, a chokepoint that handles roughly one-fifth of global oil consumption and a sizable portion of global LNG trade, primarily from Qatar.

The ongoing conflict between the United States, Israel and Iran, has led Tehran to restrict passage through this strategic waterway. Amid disrupted shipping lanes, Gulf oil producers have also begun trimming output, tightening supplies across Asian markets. India is now in discussions to diversify its LPG procurement, with Canada, Australia, and others being explored as alternative sources to ease pressure on domestic supply chains.