Karnal’s industrial sector is facing mounting financial pressure as the price of industrial Piped Natural Gas (PNG) has nearly doubled in six months, prompting local Micro, Small and Medium Enterprises (MSMEs) to seek advance notice of tariff revisions and the inclusion of PNG under the Goods and Services Tax (GST) regime.
As per the Karnal Agricultural Implements Manufacturers Association (KAIMA), the price of industrial PNG rose from Rs 55.21 per standard cubic metre (SCM) in February 2026 to Rs 103.04 per SCM in August. The association attributed the sharp rise to unrest in the Middle East.
President of KAIMA, said repeated price revisions had made it difficult for industries to plan their production costs and honour existing commitments. He urged the government to ensure that industrialists are informed 10-15 days in advance of any increase in PNG prices.
“Apart from the increase in PNG prices, another major problem is unpredictability. Industries, particularly exporters, accept orders months in advance at fixed prices. When the gas price is revised without prior information, manufacturers come to know about the higher cost only after the gas has already been consumed,” he said.
He said if industrialists get the prices after the consumption of PNG, it will be difficult for him to manage the cost of the product.
“We are left with little option to manage additional expenditure, as the prices of goods covered under pre-booked orders could not be revised,” he added.
KAIMA vice-president said the existing tax structure in Haryana was adding to the burden on industries and called for PNG to be brought under GST instead of being taxed under VAT.
“We request the government to cover PNG under GST instead of VAT so that we can claim Input Tax Credit (ITC) on the applicable taxes. It will help us in reducing the input cost to some extent,” he said.
He also called for a predictable and transparent pricing mechanism, saying PNG suppliers should mandatorily inform industrial consumers well in advance about any proposed tariff revision.
“We had a meeting with the authorities of the agency and raised our concerns,” he said.
KAIMA general secretary said industries in Karnal were also facing a competitive disadvantage compared with manufacturing units in neighbouring states as PNG prices were reportedly lower than in Haryana.
He said rising energy costs were particularly affecting MSMEs operating on tight margins and executing long-term contracts.
The industrialists warned that continued uncertainty over energy prices could affect the competitiveness and financial sustainability of manufacturing units in Karnal, with wider implications for employment and the local economy.
Source from: https://www.tribuneindia.com/news/haryana/karnal-industry-hit-by-png-price-surge-seeks-advance-notice-gst-relief/
