Petroleum companies on Friday increased the prices of industrial diesel by Rs 22 per litre. (Generated using Google Gemini)After facing the LPG crisis, industries in Punjab are now grappling with yet another serious concern, the continuously rising prices of furnace oil, petcoke and light diesel oil, key fuel sources for furnaces in automobile, steel rolling, fasteners and several allied units, with petroleum companies on Friday increasing the prices of industrial diesel by Rs 22 per litre.Notably, industrial diesel is a regular diesel purchased by large-scale industries and even by public sector companies in bulk for running generators and in-house operations.“The war in West Asia led to this crisis in India, and we are bearing its brunt,” said Pankaj Sharma, president of the Association of Trade & Industrial Undertakings (ATIU). “There has been an abrupt and continuous increase in the prices of petroleum products such as light diesel oil (LDO), furnace oil and petcoke. The prices shot up by nearly 25 per cent in 20 days. The sharp escalation has severely impacted industrial operations, particularly in the forging sector.”Capt Rajesh Mittal of Chamunda Forgings and Neeraj Dhamija of SN Bros forging unit, both executive members of the ATIU, said, “Forging industries are finding it extremely difficult to plan their production cycles due to unpredictable and steep increases in the fuel prices.”Rahul Gupta of TCG Forgings said, “The situation will significantly impact the supply chain of tractor parts, agricultural equipment, bicycle parts and auto components.”Raghav Mittal, director of Chamunda Castings Ltd., a leading supplier to the Indian Railways, said, “Supplies to various government departments are being adversely affected. Most of the tenders were finalised based on earlier, lower raw material and fuel costs. With the sudden increase, it has become unviable to execute orders at that rate.”Ayush Gupta, ATIU vice-president and owner of Dee Dee Steels Castings Ltd, said, “The steep rise in petcoke prices is a major concern for energy-intensive industries, further compounding operational challenges.”Story continues below this adRajesh Sachdev of Diana Steel Products said, “The increase will adversely impact sewing machines, induction moulds and other casting-related industries.”Pankaj Sharma emphasised, “It is high time the government steps in to support MSMEs as such volatility and uncertainty in input costs can prove disastrous for the sector.” He sought immediate intervention to stabilise prices and provide relief to ensure continuity of operations and safeguard employment.World MSME Forum president Badish Jindal said, “Amid the ongoing crisis, there has been an increase in the prices of direct bulk supply of diesel by petroleum companies. I strongly oppose the steep increase of Rs 22 per litre in the direct bulk supply of diesel by petroleum companies, which is used for industrial purposes. The sudden hike will significantly raise production and transportation costs, putting an additional financial burden on the MSME sector.”“The increase in diesel prices is also likely to escalate electricity generation costs, further impacting industrial operations. As a result, industries may be compelled to shift towards purchasing diesel from retail petrol pumps, which could lead to increased congestion and operational pressure at these outlets. The World MSME Forum urges the government to recognise industry as a priority sector, considering its vital role in generating employment and contributing to government revenue. Immediate corrective measures are needed to safeguard the interests of the MSME sector and ensure sustainable industrial growth,” Jindal added.