Aluminium Extrusion Industry Faces LPG and PNG Shortages Amid Iran War

28 Mar 2026 CW Team

Association data showed that nearly 250 of India's 450 aluminium extrusion companies are represented by ALEMA and that 90 per cent of those units are micro, small and medium enterprises. The association reported that many extrusion units have been compelled to shut down or to reduce production by 30 to 70 per cent owing to acute shortages and supply prioritisation by the Ministry of Petroleum and Natural Gas. Without prompt intervention the association warned that the capital intensive sector risks defaulting on working capital and term loans.

ALEMA asked for relief measures similar to those used during the Covid period, including reduced interest rates, a moratorium on term loan repayments, deferred interest payments and government backed low cost working capital loans, together with relaxed credit scoring norms for defaults incurred during this period. The association argued that such measures would provide liquidity and preserve credit profiles so that firms can resume normal operations once supplies stabilise. It also highlighted the broader employment and supply chain consequences if policy steps are delayed.

The association urged swift government support to sustain operations and protect jobs while it explores contingency fuel sourcing and efficiency measures internally. Industry representatives indicated that coordinated action between the ministries and financial regulators would be required to implement time bound relief. Stakeholders stressed that extraordinary circumstances beyond the control of producers call for temporary, targeted relief to avert permanent closures.

The Aluminium Extrusion Manufacturers Association of India (ALEMA) has urged the government to provide emergency relief as the aluminium extrusion sector grapples with severe liquefied petroleum gas (LPG) and piped natural gas (PNG) shortages triggered by the escalating conflict in West Asia. The association described the fuels as critical for melting, heating and ageing processes in extrusion manufacturing and said disruptions had materially affected plant operations. ALEMA indicated that supply chains have been strained by export route disruptions and prioritisation decisions by authorities. Association data showed that nearly 250 of India's 450 aluminium extrusion companies are represented by ALEMA and that 90 per cent of those units are micro, small and medium enterprises. The association reported that many extrusion units have been compelled to shut down or to reduce production by 30 to 70 per cent owing to acute shortages and supply prioritisation by the Ministry of Petroleum and Natural Gas. Without prompt intervention the association warned that the capital intensive sector risks defaulting on working capital and term loans. ALEMA asked for relief measures similar to those used during the Covid period, including reduced interest rates, a moratorium on term loan repayments, deferred interest payments and government backed low cost working capital loans, together with relaxed credit scoring norms for defaults incurred during this period. The association argued that such measures would provide liquidity and preserve credit profiles so that firms can resume normal operations once supplies stabilise. It also highlighted the broader employment and supply chain consequences if policy steps are delayed. The association urged swift government support to sustain operations and protect jobs while it explores contingency fuel sourcing and efficiency measures internally. Industry representatives indicated that coordinated action between the ministries and financial regulators would be required to implement time bound relief. Stakeholders stressed that extraordinary circumstances beyond the control of producers call for temporary, targeted relief to avert permanent closures.

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