A disruption in imported natural gas supplies due to tensions in West Asia has forced several industries in Gujarat to scale down production. The crisis has been triggered by constraints on energy shipments through the crucial Strait of Hormuz amid the ongoing regional conflict.
The supply crunch has particularly affected gas-intensive sectors such as ceramics, textiles, glass and chemicals, while the central government has moved to ensure adequate LPG supply for domestic consumers.
Factories Forced to Reduce Output
In the ceramic manufacturing hub of Morbi, more than 100 factories that rely on natural gas to operate kilns have reportedly shut down production following supply cuts.
Similarly, in Surat, thousands of textile units depend on gas for boilers and heating processes. Industry leaders say around 12,000 of the city’s 55,000 textile units run on natural gas, raising concerns that a prolonged conflict could severely impact production.
Factories in the Vatwa Industrial Estate, which hosts over 250 chemical units, have also scaled down operations due to reduced gas availability.
Nearly 25% of India’s Gas Supply Affected
Officials say nearly one-fourth of India’s natural gas requirements have been affected after foreign suppliers invoked force majeure due to the conflict in West Asia. The government is now trying to secure supplies through alternative routes.
The situation has become more serious because about 50% of India’s oil imports pass through the Strait of Hormuz, a key global shipping route that has been disrupted amid the conflict.
Centre Prioritises Household Gas and Transport
To manage the crisis, the Ministry of Petroleum and Natural Gas issued the Natural Gas (Supply Regulation) Order, 2026 under the Essential Commodities Act on March 9.
Under the order:
- Household piped gas, LPG production and CNG for transport will receive up to 100% of their average supply.
- Industrial consumers connected to the national gas grid may receive about 80% of their past six-month average consumption, depending on availability.
- Fertiliser plants will get roughly 70% of their normal supply.
Authorities have also temporarily allowed industries to use alternate fuels where possible to keep production running.
With India importing nearly 85% of its energy needs, the prolonged West Asia conflict and disruption of supply routes could continue to pressure both fuel availability and prices.