West Asia Conflict Threatens AC Production in India as LPG Supply Tightens
- brg_news_room
- Mar 12
- 1 min read
INDIA: Escalating tensions in West Asia are raising production risks for India’s air-conditioner manufacturers as LPG supply tightens. The conflict involving United States, Israel and Iran has disrupted maritime trade routes, with analysts noting a “de facto closure of the Strait of Hormuz”, a key passage for nearly one-fifth of global LPG and PNG shipments. Supply pressure has intensified following QatarEnergy’s force majeure at Ras Laffan and the shutdown of Saudi Aramco’s Ras Tanura refinery, tightening global LPG availability and lifting Asian spot prices.
Domestically, the government has directed refiners to maximise LPG output and prioritise household consumption. AC manufacturers depend on LPG/PNG for flame-brazing processes during assembly. PG Electroplast recently warned that restricted gas deliveries could disrupt operations, noting that “one cannot rule out the possibility of a complete production halt.”
Source: Business Standard
