Morbi: The ceramic industry in Morbi is facing a major crisis after Gujarat Gas announced revised gas prices for April 2026, citing the ongoing Iran-Israel conflict and its impact on global energy markets.

As per the new pricing structure, industries that were using propane despite having access to pipeline gas have now been classified as “new customers.” Gujarat Gas has fixed the gas price for these units at Rs. 94 per unit (including taxes), while existing customers will continue to receive gas at Rs. 70 per unit.

Industry stakeholders say the sharp price difference has put many units under severe financial stress, with several struggling to remain viable. They have urged the government to intervene and ensure the survival of the sector.

Industry fears mounting losses

The ceramic industry is already facing a slowdown, with weak demand in both domestic and export markets. Industrialists said rising gas prices have further squeezed margins, making operations increasingly unviable.

“Profit margins are currently around Rs. 2, while input costs have risen by Rs. 3, making it extremely difficult to sustain operations,” industry representatives said.

Reluctance over advance gas commitments

Gujarat Gas has sought advance demand estimates from industrial units for April under the revised pricing. However, many industrialists are hesitant to commit due to high costs and uncertain market demand.

They said the combination of low demand and high gas prices has left them in a dilemma over committing to Minimum Guaranteed Offtake (MGO) for the month.

Call for government intervention

The Morbi ceramic cluster comprises over 700 units. Of these, around 200–225 units currently use Gujarat Gas, while nearly 550 units had been dependent on propane. With the revised pricing, many of these units are now being treated as new customers and subjected to higher rates.

Industrialists have demanded immediate government intervention to ensure uniform gas pricing across the cluster. They warned that unless gas prices are rationalised, the future of the ceramic industry in Morbi could be at serious risk. DeshGujarat