Industrial PNG price jumps 39% in two weeks as factories switch to piped gas

CHHATRAPATI SAMBHAJINAGAR: Just as industries in Chhatrapati Sambhajinagar were beginning to get relief from LPG shortages through piped natural gas (PNG) connections, a steep 39% hike in PNG prices within a fortnight has intensified their cost pressures, industry representatives said.

Data showed that the price of PNG has risen steeply from Rs 71.04 per kg on March 5 to Rs 116.50 per kg at present, triggering concern among small and medium enterprises that had only recently begun stabilising operations after disruptions caused by the LPG supply crunch.




Following complaints from industrial units, state industries minister Uday Samant had directed gas suppliers to expedite PNG connections to ensure continuity of production. Acting on these instructions, petroleum firms provided PNG connections to 19 industrial units in the region over the past week. Confirming, petroleum firm representative Manojkumar Jadhav said: "We have provided 19 new connections and are working to expand pipeline-based supply quickly. The prices have increased due to the ongoing conflict in Gulf countries, as gas is being procured at higher rates."

Several industrial clusters across Maharashtra had witnessed partial shutdowns after LPG supply dried up, particularly in areas lacking pipeline-based gas infrastructure. Officials from gas supplying firms said more than 100 industries have applied for PNG connections, and 19 units were prioritised and connected on an urgent basis. Efforts are underway to extend connections to the remaining applicants at the earliest.

The industry representatives said while PNG availability helped avert a complete production halt, the steep price hike will directly impact manufacturing costs and could eventually be passed on to consumers. Mihir Soundalgekar, secretary of the Chamber of Marathwada Industries and Agriculture, said industries were initially apprehensive about a total shutdown due to gas shortages. "Now, production can continue as PNG connections are being provided. The sharp rise in gas prices due to the ongoing international conflict, however, is a major concern," he said.

Oil industry sources said natural gas prices were calculated based on million British thermal units (MMBTU), and fluctuations in global supply have a direct bearing on domestic rates.

With input costs rising sharply, industrial units are factoring in higher fuel expenses while pricing their products, indicating a possible ripple effect on market prices in the coming weeks.