Rajkot: The ongoing conflict in West Asia is starting to take a heavy toll on industries in the Shapar-Veraval area. As of now, a gas supply company has slashed its deliveries by 50% and tripled prices for units exceeding their average monthly gas consumption.
Gas-based units are feeling the pressure. Foundries, investment casting facilities, and heat-treatment plants rely on this fuel to operate effectively. With imports from West Asia dwindling due to the war, these businesses face an uncertain future.
The president of the Shapar-Veraval Industrial Association explained that average gas consumption is determined based on last month’s bill. If a business uses more this month than that figure, it gets hit with steep price hikes—three times the normal rate—for any excess usage. “It’s frustrating,” he said. “Even if we had low consumption last month but need more gas now, we’re penalized.”
As industry leaders prepare to meet with Petrochemical Minister Rushikesh Patel this Thursday, they’re urging immediate governmental intervention. The association warned that without quick action from authorities, conditions could deteriorate even further.
Additionally, rising container freight charges have compounded challenges for local businesses. Shipping routes have been disrupted due to tensions surrounding Iran’s involvement in the conflict—with reports indicating the Strait of Hormuz might be closed—forcing ships onto longer paths.
This disruption affects not only gas supplies but also chemical imports crucial for foundry operations. With traders raising prices amid tighter supplies caused by shipping delays, production costs are climbing rapidly.