Industry stress
Manufacturing
Gas supply adequate; furnace oil demand low as substitution continues
editorial · as of 1 Apr 2026
Operator read
Manufacturing: energy cost stable; gas supply adequate.
Energy-intensive manufacturing (cement, steel, ceramics, glass, textiles) runs on gas, furnace oil, and diesel backup. Energy cost share ranges from 12-30% of COGS.
Feedstock costs
Stress drivers
- Natural gas price above $3/MMBtu raising boiler and CHP cost
- Furnace oil above ₹42,000/MT increasing heavy industry fuel bill
- Diesel genset cost rising during grid outages
- Energy cost share above 20% of COGS in energy-intensive sectors
- Gas supply curtailment to industrial consumers
Why it matters
Energy-intensive manufacturing (cement, steel, glass, ceramics, paper, textiles) consumes gas, furnace oil, and diesel for process heat and power backup. Energy as a share of COGS ranges from 12% (FMCG) to 28% (cement, glass). Gas supply curtailments – which happen when demand exceeds domestic allocation – force industrial units to switch to coal or diesel backup, raising unit cost and emissions simultaneously.
Source