Rising fuel prices erode margins, disrupt orders for industrial units in city Ludhiana: The global energy shock stemming from the West Asia conflict is tightening its grip on Ludhiana's industry, as escalating fuel prices and shortages begin to disrupt manufacturing activity and strain small and medium-sized enterprises (MSMEs). Industrial units across Ludhiana are facing increasing stress as rising prices of petroleum-based industrial fuels continue to push up production costs. Industrialists warn that the ongoing surge in fuel prices is severely affecting manufacturing activity and could disrupt supply chains across multiple sectors. They say margins are being wiped out and fresh orders are becoming harder to secure as clients refuse to bear additional costs. Pankaj Sharma, president of the Association of Trade & Industrial Undertakings (ATIU), expressed serious concern over the sudden escalation in prices of fuels such as light diesel oil (LDO) and furnace oil. He said industries are struggling to absorb the sharp rise in input costs, occurring alongside an increase in raw-material prices. Sharma added that sectors like the forging industry, which depend heavily on these fuels, are finding it extremely difficult to continue production at current cost levels. According to Sharma, lack of LPG availability combined with rising prices of other fuels has made operations unsustainable for many units. He said dispatch of existing orders has become challenging and new orders are being refused because of higher production costs. He observed that margins on previously booked orders have vanished due to increased input costs, and customers are unwilling to accept revised prices, leading to a pause in future orders.#ludhiana #pankaj_sharma #association_of_trade_and_industrial_undertakings #rajesh_mittal #sanjeev_gupta
