Industries turning to alternative fuel as West Asia crisis hits LPG supply

The ongoing West Asia crisis has disrupted commercial LPG supplies, compelling industries, including mining operations, to resort to alternative fuel options.

“When LPG availability faces challenges due to the West Asia conflict, there will be an impact on industrial processes,” sources said, adding that no specific figures were available on cuts in LPG supply to industries.

Alternative solutions are being considered, with ammonia cylinders being increasingly used for industrial applications amid delays in commercial LPG deliveries triggered by the regional tensions.

“Industries are in touch with local administrations, trying to arrange whatever is possible. We have to make adjustments and ensure a contingency plan to take care of inevitable effects,” the sources said.

The crisis has particularly hit labourers working on mining and infrastructure projects, who rely on commercial LPG for cooking. “Lower availability of LPG has impacted them, as induction technology doesn’t work everywhere,” the sources said.

The sources highlighted broader ripple effects on the mining and metals sectors.

“As of now, prices of all metals are very high due to multiple factors, including the West Asia situation, even affecting the aluminium extrusion industry.” While high metal prices benefit some sectors, they do not help industries with price-inelastic products, the sources pointed out.

“Across-the-board impact of the West Asia crisis is inevitable, but the government is trying to minimise it,” they added.