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Gas shortage hits ceramic hub in Gujarat's Morbi as Iran war widens
Gas shortage hits ceramic hub in Gujarat's Morbi as Iran war widens
Gas shortage hits ceramic hub in Gujarat's Morbi as Iran war widens
For Morbi, the world’s second-largest ceramic hub, the stakes are existential, even as Qatar shutters the world's largest LNG terminal amid Iran war.
Updated on: Mar 04, 2026 5:02 PM IST By Tushar Deep Singh Share via Copy link The ceramic industry in Gujarat’s Morbi district is facing a looming production crisis as an escalating Iran war chokes the supply of essential natural gas. A ceramics unit in Morbi. (ANI) “Most of the gas and petroleum products come from GCC countries,” said Manoj Arvadiya, president of Morbi Ceramic Manufacturers Association. “Currently, all vessels passing through are being stopped at an area controlled by Iran. A complete barricade has been erected there.” Shipping through the Strait of Hormuz, which carries nearly nearly half of India's crude oil and gas supply every day, has come to a halt as the Iran war intensified and spread across the wider Middle East. Tehran's drone attacks, in retaliation to missile operations by Israel and the United States, have forced Qatar to shut down the world's largest LNG terminal in Ras Laffan. Separately, Saudi Aramco has closed its Ras Tanura refinery, and Iraq has cut oil production as there's no way to evacuate the output.Iran war impact on India
For the manufacturers in Morbi—the world’s second-largest ceramic hub—the stakes are existential. Arvadiya said the industry is almost entirely dependent on gas-fired kilns. "If the gas supply is not adequate, we anticipate that the entire Morbi Ceramic Industry will have to be shut down," he said, adding that the gas shortage could lead to a total shutdown if logistics do not improve.New Delhi Projects Calm
Despite the industry’s alarm, New Delhi maintains that India’s energy security remains intact. The country holds eight weeks of crude oil and petroleum inventory, including strategic reserves. Officials further downplayed the impact of the Iranian blockade, asserting that only 40% of India’s crude imports transit through the Strait of Hormuz. While the government continues to monitor the situation closely, they insist that diversified sourcing and existing stockpiles leave the country in a “comfortable position” to manage potential supply-side shocks. ABOUT THE AUTHOR Tushar Deep Singh Tushar Deep Singh is a business journalist and digital editorial leader with 12 years of experience at the intersection of India’s Automotive and IT-AI sectors. Currently Assistant Editor at Hindustan Times, he is building the HT Business vertical and managing the newsletters for both Livemint and HT. When not in the newsroom, he can be found on a motorcycle. Throughout his career, Tushar has been instrumental in scaling digital publishing operations at some of India’s largest financial news websites. His six-year tenure at Mint—the first job—saw him plunge into online media to deliver record-breaking digital engagement for Livemint.com, including 7.2 million pageviews on 2017 UP Election Results day. He held fort at Livemint during a senior-level leadership transition later that year. That won him the HT Media Star Award (Bronze) in 2017 and a Certificate of Appreciation for Editorial Excellence in 2018. As the head of the digital desk at ETTech, he curated two daily, full-stack newsletters from an editorial as well as product perspective. At NDTV Profit, he transitioned from website editor to principal correspondent, reporting on the Auto and AI-IT sectors for the TV channel and website, thereby adding yet another layer to his editorial expertise. He is a post-graduate in journalism from Xavier Institute of Communications, Mumbai, and a graduate from St. Xavier's College, Ahmedabad.Read More Stay updated with the latest Business News on Petrol Price, Gold Rate, Income Tax Calculator along with Silver Rates, Diesel Prices, Budget 2026 LIVE on Hindustan Times. News / Business / Gas Shortage Hits Ceramic Hub In Gujarat's Morbi As Iran War Widens See LessThe ceramic industry in Gujarat’s Morbi district is facing a looming production crisis as an escalating Iran war chokes the supply of essential natural gas.
“Most of the gas and petroleum products come from GCC countries,” said Manoj Arvadiya, president of Morbi Ceramic Manufacturers Association. “Currently, all vessels passing through are being stopped at an area controlled by Iran. A complete barricade has been erected there.”
Shipping through the Strait of Hormuz, which carries nearly nearly half of India's crude oil and gas supply every day, has come to a halt as the Iran war intensified and spread across the wider Middle East. Tehran's drone attacks, in retaliation to missile operations by Israel and the United States, have forced Qatar to shut down the world's largest LNG terminal in Ras Laffan.
Separately, Saudi Aramco has closed its Ras Tanura refinery, and Iraq has cut oil production as there's no way to evacuate the output.
Officials further downplayed the impact of the Iranian blockade, asserting that only 40% of India’s crude imports transit through the Strait of Hormuz.
While the government continues to monitor the situation closely, they insist that diversified sourcing and existing stockpiles leave the country in a “comfortable position” to manage potential supply-side shocks.
Source: HindustanTimes
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