The Ministry of Labour and Employment has issued a notification on August 26, 2025, extending the declaration of industries engaged in the manufacture or production of crude oil as a public utility service under the Industrial Disputes Act, 1947. This extension will remain in effect for an additional six months, starting from August 28, 2025.
Background:
The services related to the production of crude oil, including petroleum products such as motor and aviation spirit, diesel, kerosene oil, and other hydrocarbon-based oils, are vital for the nation’s economy and energy security. As such, these services were initially declared as public utility services for a period of six months starting February 28, 2025, in order to prevent disruptions and ensure their smooth functioning.
The Central Government had, through a previous notification issued in February 2025, declared industries involved in crude oil production as a public utility service. This was done to maintain uninterrupted services in an industry essential to the functioning of many critical sectors like transportation, aviation, and energy.
Extension of the Public Utility Service Status:
In a recent update, the Ministry of Labour and Employment has decided to extend this status for another six months, due to the ongoing importance of crude oil and its derivatives to national interests. The extended period will begin on August 28, 2025, and end on February 28, 2026.
The extension ensures that any industrial disputes or strikes in these industries can be effectively managed to prevent disruption in the supply of essential products. Under the Industrial Disputes Act, 1947, declaring an industry as a public utility service gives the government the authority to intervene in the event of industrial disputes and ensure the continuation of services that are critical to public interest.
Key Highlights of the Notification:
- Extension Period: The declaration of services engaged in crude oil production as a public utility service will now be in effect until February 28, 2026.
- Affected Industries: The industries involved in the manufacture or production of:
- Crude oil
- Motor and aviation spirit
- Diesel oil
- Kerosene oil
- Fuel oil
- Hydrocarbon oils and blends (including synthetic fuels)
- Lubricating oils
- Legal Basis: The extension is made under the Industrial Disputes Act, 1947, particularly Section 2(n) and the proviso to sub-clause (vi) of Clause 2.
- Public Interest: The government has cited public interest as the primary reason for the extension, emphasizing the crucial role these industries play in maintaining energy security, transportation, and other sectors of the economy.
Impact of the Notification:
- Dispute Resolution: The extension ensures that in case of any disputes, the government has the authority to intervene and mediate in order to maintain uninterrupted production and supply of crucial petroleum products.
- Stability in Supply: By designating these industries as public utility services, the government can prevent strikes or lockouts that might lead to shortages in essential fuels such as diesel, kerosene, and aviation fuel, which are critical for sectors like transport and aviation.
- Worker Rights: While the public utility service designation restricts the right to strike, it also offers a platform for mediation and conciliation to address workers’ concerns through official dispute resolution mechanisms.
- National Importance: The extended declaration underlines the importance of the oil and gas sector as a national priority, ensuring that production continues smoothly and consistently, especially during times of economic or geopolitical uncertainty.
Conclusion:
This extension of the public utility service status highlights the government’s commitment to ensuring the stability and uninterrupted operation of industries crucial to India’s energy needs. As crude oil and its derivatives are indispensable for various sectors, particularly transportation, aviation, and industrial operations, the move ensures that the country can avoid disruptions in fuel supply while resolving any disputes through legal and structured channels.
The extension will help maintain economic stability and avoid disruptions that could potentially affect the daily lives of citizens and the functioning of the national economy.