Israel–Iran Conflict Disrupts LPG Supply, Hits MSMEs in Ludhiana
March 23, 2026
ETT News / Ludhiana
Industrial units in Ludhiana are staring at a potential shutdown as an acute shortage of LPG supply has disrupted production across key sectors for the past five days. The crisis, triggered by global supply disturbances linked to the recent Israel–Iran conflict, has led the government to prioritize LPG distribution for domestic use, hospitals, and defence, leaving industries struggling to maintain operations.
Raising the issue, Federation of Industrial and Commercial Organisation (FICO) President Gurmeet Singh Kular met officials of the MSME Development Office and the National Small Industries Corporation (NSIC) on Monday and submitted a memorandum seeking immediate intervention. He warned that industries, which operate on a just-in-time system without maintaining surplus fuel stock, are among the worst affected by the supply restrictions.
Several sectors including heat treatment, forging, cycle parts manufacturing, and hosiery have either halted or significantly reduced production due to the non-availability of LPG. Industrial canteens are also facing difficulties in preparing food for workers, adding to the operational challenges and affecting employee welfare.
FICO has urged the authorities to allow limited supply of 422 kg industrial LPG cylinders and permit the use of 19 kg cylinders for industrial canteens to ensure continuity. The organisation also demanded the creation of a 10 per cent buffer stock to meet urgent industrial requirements.
Kular emphasized that keeping industries operational is essential to sustain economic activity and protect employment, warning that prolonged disruption could severely impact both businesses and workers. He recalled that industries were allowed to function during the COVID-19 period and urged the government to grant similar priority now by treating the sector as an essential service.
FICO has called for immediate action from the government to restore LPG supply and prevent further losses to the industrial sector.
LPG Crisis Ludhiana Industry FICO Demand MSME Sector NSIC Officials Industrial Shutdown Fuel Shortage Manufacturing Slowdown Employment Impact Emergency Service Status
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