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Fuel Squeeze Shuts Nearly 100 Morbi Ceramic Units as Gujarat Gas Cuts Supply

A force majeure by Gujarat Gas follows stalled propane shipments through the Strait of Hormuz.

Overview

  • Industry leaders report roughly 100 ceramic factories in Morbi have halted operations, with up to 400 more at risk within a week if fuel does not arrive.
  • Gujarat Gas has declared force majeure and restricted industrial PNG by 50% effective March 6, tightening supplies even for units that can switch from propane.
  • Propane deliveries to the cluster have largely stopped after Gulf shipping disruptions, leaving many units with only two to four days of fuel against a daily need of about 5,500 tonnes.
  • Morbi accounts for roughly 80–90% of India’s ceramic output, with 600-plus units and over four lakh workers dependent on steady gas supplies for kiln operations.
  • Export schedules and local supply chains are fraying, and industry associations are urging urgent government action and alternative sourcing to prevent a broader shutdown.