On one hand, due to the Iran war, there is a crisis of Liquefied Petroleum Gas (LPG) across the country, on the other hand, if this war drags on, it is sure to affect the common people in different ways.
The peak summer season has just begun, but the increasing unrest in the Middle East has created a new problem for AC manufacturers. The reason for this is the reduction in supply of LPG and decreasing availability of petrochemicals. Due to these reasons, the production of AC is getting affected.
Why impact on AC output?
According to industrial experts, LPG is used for many purposes in the manufacturing process, such as for brazing copper and powder coating. At the same time, petrochemicals are very important for the manufacture of polymers. These are used in making plastic and mechanical parts of AC units. In such a situation, shortage of raw materials is having a direct impact on production.
Although it has not seen a big impact in the market yet, but if the situation in the Middle East does not improve soon, it can become a big challenge during the peak summer season. Customers who have already purchased ACs are having to pay higher prices and may see another increase in prices between April and May. This means that the impact of war can fall directly on people’s pockets.
Why will the challenge increase?
According to a report in The Times of India, Vikas Gupta, MD (Operations) of PG Electroplast, a company manufacturing ACs and other white goods, said that production is already facing many challenges.
He said that the availability of LPG and Piped Natural Gas (PNG) is becoming a big problem, whereas their use is essential in the manufacturing of ACs and other products. Apart from this, shortage of petrochemicals is also affecting the production, due to which there are problems in daily production.
Meanwhile, Blue Star Limited MD B Thiagarajan says that due to the new energy policies, the prices of ACs have already been increased by about 5 percent. In such a situation, prices may increase further by 8 to 10 percent in the coming time.
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