Manufacturing micro, small and medium enterprises have reported acute liquefied petroleum gas shortage that has disrupted production across multiple sectors, industry groups said. The disruption has affected small foundries, wire and fastener makers, and rubber and ceramics units that rely on LPG for process heat. Trade associations warned that constrained supplies and rising costs have forced many units to shorten production schedules or halt operations temporarily. Many units are reportedly seeking alternative fuel arrangements to maintain essential operations.

Producers in export-linked clusters have experienced reduced output and missed delivery timelines, with knock-on effects for supply chains and downstream vendors. Small firms with limited storage capacity have been particularly vulnerable, leading to longer lead times and increased logistics costs. Industry sources indicated that the shortage risks eroding margins and could prompt temporary labour reductions if remedial steps are not taken. This has increased procurement costs and disrupted planning for the upcoming quarter.

Sources attributed the shortage to a combination of distribution bottlenecks, higher domestic demand and logistical challenges that have constrained cylinder availability in industrial clusters. Higher spot prices have added to cost pressures for manufacturers that cannot pass on the full burden to buyers. Associations urged coordination between distributors and policy makers to restore normal supplies and to consider rationing mechanisms for critical industrial users. Manufacturers highlighted the importance of transparent allocation data to facilitate planning and reduce market distortions.

Industry bodies recommended targeted allocation to priority sectors, expedited relief for small units and short term financial support to manage working capital strains. They also called for longer term measures to diversify energy sources and improve on site storage and procurement practices. The industry cautioned that without timely interventions, the disruption could weaken competitiveness and employment in the micro, small and medium enterprise segment. Stakeholders urged rapid monitoring and public communication to prevent escalation and restore investor confidence.