Why Did Government Invoke ESMA Amid US–Israel–Iran War?

0
49
LPG cylinders stacked as government invokes ESMA to secure gas supply

The Indian government has invoked provisions of the Essential Services Maintenance Act (ESMA) to ensure uninterrupted supply of natural gas and cooking fuel as global tensions rise due to the ongoing conflict involving the United States, Israel and Iran.

Officials said the move was aimed at preventing disruption in the availability of liquefied petroleum gas (LPG) and other critical fuel supplies that millions of households depend on daily.

India currently has around 33.08 crore active LPG consumers, making stable fuel supply a crucial priority for the government during periods of international uncertainty.

Authorities say invoking ESMA allows the government to maintain essential services and prevent disruptions in the energy supply chain at a time when global energy markets are facing volatility.

What Is the Essential Services Maintenance Act?

The Essential Services Maintenance Act, commonly known as ESMA, was enacted in 1968 to ensure the uninterrupted functioning of essential public services in the country.

The law allows governments to prohibit strikes, regulate operations and ensure continuity of services that are considered vital for public life.

These essential services typically include sectors such as healthcare, transportation, electricity supply and energy distribution.

Although the Act provides a broad framework, it also gives state governments the authority to identify and designate specific services as “essential” depending on the situation.

Why Has ESMA Been Invoked Now?

The decision to invoke ESMA comes amid concerns that the ongoing geopolitical tensions in West Asia could affect global energy supplies.

India relies significantly on imports for its energy requirements, including LPG and natural gas. Any disruption in supply chains or sudden surge in global prices could impact domestic availability.

By invoking ESMA, the government aims to ensure that the supply chain for LPG cylinders and natural gas remains stable and that distribution networks continue operating without interruptions.

When Was ESMA Last Used in the Energy Sector?

The government had previously invoked ESMA-related provisions in the oil sector during the period following the Russian invasion of Ukraine.

At that time, refiners were directed to prioritise domestic fuel supply rather than exporting petroleum products, as global fuel prices had surged and export margins had become highly profitable.

The move was intended to protect domestic consumers from shortages and price spikes.

Officials say similar precautionary steps are now being taken to ensure that India’s large LPG consumer base does not face disruptions in cooking gas supply during the ongoing geopolitical crisis.

Why Is Gas Supply Critical for India?

Energy experts point out that LPG remains one of the most widely used household fuels in India.

Millions of homes rely on LPG cylinders for daily cooking, and disruptions could affect both urban and rural households. Ensuring a steady supply is therefore considered a major priority for the government during periods of global instability.

LEAVE A REPLY

Please enter your comment!
Please enter your name here