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Gas crunch puts India Inc's production under pressure
Financial Express Pune
|March 14, 2026
IMPACT OF WEST ASIA CONFLICT
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THE HOSPITALITY INDUSTRY is not the only sector impacted by the shortage of commercial gas triggered by the West Asia conflict. Production units across durables, auto components, glass and ceramics, packaged food, steel and tyres are also feeling the strain. Commercial gas is widely used in manufacturing processes ranging from forging and casting to brazing, soldering, painting, and blast-furnace and smelter operations.
Executives across these sectors have told FE that an inadequate supply of gas to commercial units will hamper production from April onwards, as storing gas is risky given its highly inflammable nature.The shortage, coupled with a spike in commodity, packaging and freight costs, has also put corporate India in a tight spot as price hikes will have to be undertaken from April to cushion the impact on margins.This could hurt demand just as it was beginning to stabilise following the GST 2.0 reforms.
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