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To prevent hoarding of gas cylinders and ensure that the supply of LPG is not disrupted, the Central Government has implemented the Essential Services Maintenance Act.

Oil and Gas Crisis: The situation in the Middle East due to the Iran-Israel war is also affecting the supply of oil and gas in India. There is a huge shortage of gas in the country, due to which the government has imposed strict rules. Gas is currently available for domestic use, but there is a severe shortage of commercial gas cylinders. To prevent hoarding of gas cylinders and ensure that the supply of LPG is not disrupted, the Central Government has implemented the Essential Services Maintenance Act (ESMA).

The government has also invoked the Essential Commodities Act (EC Act) to ensure uninterrupted supply of domestic LPG. Also, refineries and petrochemical units have been instructed to increase LPG production and transfer major hydrocarbon sources to the LPG pool.

What is ESMA?

The Essential Services Maintenance Act (ESMA) is a law designed to ensure the continuous and smooth supply of certain critical services. These services are directly to the normal life of the general public, and their disruption directly impacts the people. This includes services like public transport (like bus services), health services (doctors and hospitals).

Instructions to oil refineries under ESMA

The government has used emergency powers under ESMA to allow oil refineries to increase LPG production. Its objective is to ensure availability of domestic cooking gas while dealing with potential disruptions due to increasing conflict in West Asia. India’s LPG consumption in FY 2024-25 was 31.3 million tonnes, of which only 12.8 million tonnes was produced in the country and the remaining requirement had to be dependent on imports.

The Government has set priorities for the availability and distribution of natural gas by invoking the provisions of the Essential Commodities Act (ESMA). First priority has been given to domestic natural gas (PNG) available through pipeline and CNG for vehicles, to which it will be mandatory to provide 100% gas. The second priority has been given to fertilizer producing plants, which will have to ensure gas supply of 70% of the average requirement of the last six months.

Gas and oil crisis due to closure of Strait of Hormuz

85-90% of India’s oil imports come from Saudi Arabia and other countries, which are dependent on the Strait of Hormuz. This sea route has been closed due to the ongoing conflict between Iran and America-Israel for the last 11 days. Despite the sufficient refining capacity in India, in view of the shortfall in LPG production, the government has instructed refineries to increase production.

(For more news apart from Central government invokes emergency regulations under ESMA news in Hindi, stay tuned to Rozanaspokesman Hindi)

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