The Government of India has undertaken a historic consolidation of labour laws by implementing four labour codes: the Occupational Safety, Health and Working Conditions Code, 2020 (OSHWCC); the Social Security Code, 2020; the Industrial Relations Code, 2020; and the Code on Wages, 2019. Together, these reforms establish a comprehensive and consistent framework for safety, working conditions, and social security across industrial establishments.
In this context, the petroleum industry—one of India’s most critical and high-risk sectors—stands to gain significantly from the unified regulatory ecosystem.
With the new labour codes, the petroleum sector will move away from an outdated, fragmented regulatory environment that relied heavily on punitive, inspector-driven enforcement. Instead, it enters a modern, technology-enabled system designed for simplicity, transparency, and ease of compliance. The provisions are especially relevant for hazardous, high-risk industries such as oil and gas, where safety must be ensured across every stage—from production and processing to storage and distribution.
Evolving Dimensions and Structure of the Petroleum Industry
The petroleum industry involves inherently high-risk operations due to constant exposure to flammable hydrocarbons, hazardous gases like hydrogen sulphide, carcinogenic benzene vapours, cryogenic LNG, high-pressure LPG, and hot liquids. Workers face major risks from thermal radiation, toxic chemical exposure, and occupational diseases.
Earlier, safety regulations for this sector were primarily governed by the Factories Act, 1948. While progressive for its time, the Act fell short of addressing the unique complexities of the petroleum value chain. Its provisions were limited to factory premises, offered restricted medical surveillance, had scattered emergency response requirements, and relied on inconsistent enforcement mechanisms.
The petroleum industry’s evolving risks—across exploration and production fields, refineries, petrochemical complexes, LNG terminals, cross-country pipelines, tank farms, and retail fuel outlets—necessitated a more modern, unified approach.
Under the previous framework:
Enforcement depended largely on individual inspectors
Documentation was paper-based
Emergency management systems were fragmented
Long-term health risks for workers exposed to petroleum hazards were not adequately monitored
Approvals for pipelines, retail outlets, and multi-location storage hubs required multiple departmental clearances
The new labour codes address these gaps with a single consolidated framework aligned with global best practices.
