Gujarat Gas Enters Propane Market, Targets Morbi Ceramic Cluster.

In a strategic move to recapture its market share, Gujarat Gas Ltd has announced its foray into the sourcing and sale of propane gas. The state-run company, a major player in India's City Gas Distribution (CGD) sector, will initially target the vast ceramic cluster in Morbi, where industrial customers have increasingly been shifting to cheaper fuel alternatives.

The decision was formalized by the company's board of directors with the goal of becoming a "total energy solutions provider," according to Sandeep Dave, Company Secretary for Gujarat Gas. "The company's board of directors has approved to undertake sourcing and sale of propane or LPG to industrial customers," Dave stated.

The move comes in response to a significant decline in sales volumes in the Morbi ceramic hub, which accounts for up to 90% of India's total ceramic production. Industries there have been opting for propane over piped natural gas (PNG) due to a notable price difference. This trend has directly impacted Gujarat Gas, with sales in the Morbi market dropping by 10% in the first quarter of FY 2026. The company reported a sale of 2.51 million metric standard cubic meters per day (mmscmd) in Q1 FY26, down from 2.87 mmscmd in the previous quarter.

By offering propane, Gujarat Gas aims to provide a competitive alternative to its industrial customers and stabilize its revenue streams in a key market.