The Assam Government has invoked the Essential Services Maintenance (Assam) Act, 1980, to prohibit strikes by employees in the state’s vital oil and gas sector for a period of six months, effective from July 28, 2026.

This measure aims to ensure the uninterrupted functioning of the critical oil and gas industry, which is deemed essential for public interest and the normal life of the community. The ban covers a wide range of personnel, including officers, workmen, contract labourers, tanker drivers, and khalasis engaged in oilfields, refineries, and establishments involved in the production, supply, or distribution of petroleum, petroleum products, and natural gas.

What was announced

A notification issued by the Political (A) Department, Dispur, announced the prohibition of strikes. The Governor of Assam, exercising powers conferred under Section 3 of the Essential Services Maintenance (Assam) Act, 1980, ordered the ban after deeming it necessary and expedient in the public interest.

The order explicitly applies to all services within any oilfield or refinery, as well as any establishment or undertaking dealing with the production, supply, or distribution of petroleum, petroleum products, and natural gas, as defined under the Act.

Why it matters

Assam holds a significant position in India’s energy landscape, accounting for approximately 15 percent of the nation’s crude oil output and 50 percent of India’s onshore production of oil and natural gas. The state is home to four oil refineries, including Asia’s first, the Digboi Refinery, established in 1901. Major players like Oil India Limited (OIL) and Oil and Natural Gas Corporation (ONGC) operate extensively in Assam.

Disruptions in this sector could have far-reaching economic consequences, affecting not only the state’s revenue but also the supply of essential fuels and energy to various industries and households across the region. The oil sector’s contribution to Assam’s Gross State Domestic Product ranges between eight to ten percent annually, and it provides substantial direct and indirect employment.

Background

The Essential Services Maintenance (Assam) Act, 1980, is a state legislation designed to ensure the delivery of crucial services that, if obstructed, would adversely affect the normal life of the people. It grants the government the power to prohibit strikes in essential services.

Assam has a history of invoking ESMA in its oil and gas sector to prevent industrial unrest. The state government previously banned strikes in the oil and gas sector for six months from December 31, 2019, and again extended it from July 1, 2020, to December 31, 2020. More recently, in March 2024, the Assam government also brought petroleum dealers and retailers under the ambit of ESMA to avert a strike by their association over commission revisions.

The Act outlines penalties for illegal strikes, including imprisonment for up to six months or a fine of up to one thousand rupees, or both. It also provides for penalties for instigation and financial aid to illegal strikes.

Key details

The prohibition on strikes in the oil and gas sector will remain in force for a period of six months, beginning from July 28, 2026. The order will be valid until January 28, 2027, or until further orders are issued, whichever is earlier.

The ban applies to a broad spectrum of personnel, including officers, workmen, contract labourers, tanker drivers, and khalasis. The services covered encompass any oilfield or refinery, and any establishment or undertaking involved in the production, supply, or distribution of petroleum, petroleum products, and natural gas.

What’s next

The government’s order is immediately effective from July 28, 2026. The move is expected to maintain stability in the critical energy sector of Assam for the next six months. Stakeholders in the oil and gas industry are now operating under the provisions of ESMA, which prohibits any form of strike during this period. The situation will be closely monitored by the state administration to ensure compliance and prevent any disruptions to essential services.

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