The government has invoked the Essential Commodities Act of 1955 (popularly called ESMA) in order to ensure the supply of natural gas amid the US-Israel-Iran war. “The supply of natural gas must be treated as priority allocation and shall be maintained subject to operational availability to one hundred per cent of their average past six-month average gas consumption,” the notification reads. India has 33.08 crore active liquefied petroleum gas (LPG) consumers, and the government is looking to maintain an uninterrupted supply.
It must be noted that India consumed 31.3 million tonnes of LPG in 2024-25, of which only 12.8 million tonnes were produced domestically, with the remainder imported. Imports have become increasingly vulnerable as 85-90 per cent come from countries like Saudi Arabia that rely on the narrow but critical Strait of Hormuz for transit.
According to a PTI report, the country has an adequate stock of crude oil (the raw material for making petrol and diesel), but as much as 30 per cent of gas supplies have been affected.
India consumes about 195 million standard cubic meters of natural gas daily for generating electricity, producing fertilisers, turning into CNG for automobiles, piping to household kitchens for cooking and use as feedstock in industries ranging from steel to ceramics. Roughly half of this is imported.
What is ESMA?
The Essential Services Maintenance Act, which was enacted in 1968, is usually referred to as ESMA. The law was designed to ensure the uninterrupted supply of vital services like healthcare, transport, and electricity.
The act includes a long list of essential services, but also allows states to choose them.
When was ESMA last used?
The government invoked ESMA provisions in the oil sector during the post-Ukraine war period, asking refiners to ensure domestic fuel availability and not to export, which had become lucrative due to high margins.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
