LPG Shortage Threatens MSME Operations Industry Body Seeks Govt Intervention

(MENAFN- KNN India) New Delhi, Mar 16 (KNN) A shortage of liquefied petroleum gas (LPG) is pushing micro, small and medium enterprises (MSMEs) towards an operational crisis, the Association of Indian Entrepreneurs has said, urging urgent intervention from the central and state governments.

National Chairman K E Raghunathan said LPG is a critical energy source for thousands of small industries, commercial kitchens and food processing units, reported the Business Standard.

“For MSMEs, LPG is not just a fuel but a lifeline of daily production. When supply becomes uncertain and prices rise sharply, small businesses are unable to absorb the shock,” he said in a statement.

Raghunathan noted that unlike large corporations, Micro, Small and Medium Enterprises (MSMEs) operate on thin margins, making them vulnerable to sudden increases in energy costs or disruptions in fuel supply.

He warned that prolonged shortages could force several units to cut production, reduce workforce or temporarily suspend operations, potentially affecting employment, supply chains and local economies.

The association has urged governments to prioritise LPG supplies for MSMEs and essential industries to prevent disruptions in production. It also called for a temporary reduction in excise duty and value-added tax on petroleum fuels used by the sector, along with stricter monitoring to curb hoarding and black marketing of commercial LPG cylinders.

Meanwhile, the Government of Tamil Nadu has announced a subsidy of Rs 2 per unit of electricity for restaurants, hotels and tea shops that switch to electric stoves instead of commercial LPG cylinders.

According to state officials, 60,698 factories operating with consent from the Tamil Nadu Pollution Control Board will no longer require additional certification to use alternative fuels such as kerosene.

(KNN Bureau)

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