Ahmedabad: Gujarat Energy Ltd (GEL), formerly known as Gujarat Gas, has raised the industrial natural gas price for Morbi’s ceramic and tiles industry by Rs 11 per standard cubic metre (SCM), taking it from Rs 79 to Rs 90/SCM, excluding 6% VAT, from Sep 2.The revised pricing has triggered concerns among Morbi’s ceramic manufacturers, who fear that higher fuel costs could further erode their competitiveness in domestic and international markets.According to a revised communication issued by GEL, the Morbi tiles-category marine gas oil (MGO) price has been fixed at $28.294 per MMBTU, equivalent to Rs 90/SCM at an exchange rate of Rs 96 per dollar.Long-term natural gas users and sanitaryware units have been given an Rs 8 discount, bringing their Sep landing price to Rs 82/SCM. For other non-tile industrial customers in Gujarat and Dadra and Nagar Haveli (DNH), GEL has set the MGO price at Rs 82/SCM. The communication also lists the non-MGO price at $30.807/MMBTU.“Propane is cheaper currently. Those dependent only on natural gas will not make any profit,” said Narendra Sanghat, president of the wall tiles division of the Morbi Ceramics Association. “Fuel accounts for around 35-40% of production costs. Manufacturers are also facing higher container freight costs and limited freight availability, which is further impacting overall competitiveness,” he said.Morbi has about 800 ceramic units producing tiles and sanitaryware, according to industry estimates. Of these, around 550 units use propane to manage fluctuations in natural gas prices.Industry sources said about 35% of Morbi’s gas requirement was sourced from GEL in Aug, while propane accounted for the remaining 65%. Propane’s share is expected to rise to around 80% in Sep, with GEL’s share potentially falling to 20%.Manufacturers said the differential pricing could push more units towards propane and affect the competitiveness of Morbi’s ceramic exports.“The relief should be available uniformly to all customers. International LNG prices have gone up. GEL has given a discount, but not all users get the same relief,” said ceramic tile manufacturer Nilesh Jetparia. He said manufacturers with piped gas connections already pay connection charges, while some have partially shifted to propane to manage input costs.“Morbi exporters need competitive pricing in international markets. Uniform relief would help manufacturers manage the increase in fuel costs,” Jetparia said.Before the West Asia crisis escalated, the average gas price for Morbi ceramic units was around Rs 48/SCM, industry sources said. The current listed price of Rs 90/SCM is about 88% higher than that level. Even for eligible customers receiving the Rs 8/SCM discount, the Sep landing price of Rs 82/SCM remains about 71% above the pre-crisis level.