PESO Licence for Petroleum, Gas & Explosives
If you store diesel above 2,500 litres, run a petrol pump or CNG station, fill gas cylinders or keep pressure vessels, you need a licence from the Petroleum and Explosives Safety Organisation (PESO). We prepare the application, follow up the District Authority NOC and handle the online filing with PESO.
What it is
A PESO licence is permission from the Petroleum and Explosives Safety Organisation to import, store, transport or handle a hazardous substance in quantities above the free limits.
Two old laws sit behind it: the Explosives Act, 1884 and the Petroleum Act, 1934. The detail is in the rules. The Petroleum Rules, 2002 cover petrol, diesel and other petroleum. The Gas Cylinders Rules, 2016 cover filling and storing compressed gas cylinders. The Static and Mobile Pressure Vessels (Unfired) Rules, 2016, called SMPV(U) Rules, cover large tanks of LPG and other gases. The Explosives Rules, 2008 cover explosives and fireworks.
Who it applies to
You run DG sets or boilers on stored fuel
Registered factories and workshops that keep diesel for generators, boilers or furnaces beyond the exempt limit, and plants that store furnace oil, solvents or other petroleum products in tanks.
You sell fuel or gas
Petrol pumps, CNG stations, LPG bottling plants and gas cylinder godowns. Each needs its own licence form under the relevant rules.
You hold gas under pressure or use explosives
Industries with storage vessels for LPG, ammonia or other compressed gases, road tanker operators, and users or sellers of explosives and fireworks.
Why it matters
Storing without it is an offence
Section 23 of the Petroleum Act, 1934 makes unlicensed storage punishable. A second offence is punished more heavily than the first.
Your limit is written down
The licence names the product and the quantity you may hold. Your stores team knows exactly how much the site can take.
Your site is checked for safety
PESO approves the layout, safety distances and equipment before anything is stored. Mistakes get fixed on paper, before the tank foundation is cast.
Which PESO licence do you need?
| Activity | Rules | Licence form |
|---|---|---|
| Petrol pump (retail outlet) | Petroleum Rules, 2002 | Form XIV |
| Petroleum storage tanks (diesel, furnace oil etc.) | Petroleum Rules, 2002 | Form XV |
| CNG station | Gas Cylinders Rules, 2016 | Form G |
| LPG bottling plant | SMPV(U) Rules, 2016 and Gas Cylinders Rules, 2016 | Form III (SMPV) and Forms E & F (GCR) |
| Pressure vessels and road tankers | SMPV(U) Rules, 2016 | Forms LS-1A and LS-2 |
| Explosives and fireworks | Explosives Rules, 2008 | Forms LE-1, LE-3, LE-5 (by activity) |
Petroleum is grouped into Classes A, B and C by flash point (see the FAQs below), and the class decides the free limit. Section 7 of the Petroleum Act lets you store up to 2,500 litres of Class B without a licence, provided no single container holds more than 1,000 litres, and up to 45,000 litres of Class C. Section 8 allows 30 litres of Class A not meant for sale.
Here is the catch. Picture a forging unit in Faridabad’s industrial area that runs two DG sets and keeps a single 5,000-litre diesel tank. That one tank is above the 2,500-litre limit, so the unit needs a Form XV licence. Two separate 1,000-litre tanks would have stayed inside the exemption.
Documents required
Prove who you are
- Certificate of incorporation, partnership deed or proprietor KYC
- PAN and GST registration
- Ownership or lease papers for the site
- Authorisation for the person signing
Show the site
- Site plan and layout drawings to scale, showing safety distances
- Tank, vessel or storage shed details with capacities
- Two copies of the site plan for the District Authority NOC
Back it with technical papers
- Drawings and specifications from your engineer or tank fabricator
- Test certificates for pressure vessels and cylinders, where the rules ask for them
- NOC endorsed by the District Authority
How it works
Map what you store to the right form
We look at what you store, how much and where, and confirm whether a licence is needed and under which form. Say you already run a petrol pump on the Delhi–Mathura road and want to add CNG: that is a separate Form G licence under the Gas Cylinders Rules, not a change to your Form XIV.
Get the District Authority NOC
Under Rule 144 of the Petroleum Rules, a new applicant first asks the District Authority, usually the District Magistrate, for a no-objection certificate with two copies of the site plan.
File plans and the application with PESO
Your engineer prepares the drawings. We put together the application, in Form IX for petroleum, with the endorsed NOC and pay the fee online.
Build to the approved plan
Once PESO approves the plans, construction or installation follows exactly as approved. Any change needs fresh approval.
Clear the inspection and receive the licence
PESO officers inspect where the rules require it, and the licence is granted. We track the expiry date and renewal for you.
Timelines
Expect the NOC within three months
Rule 144(5) asks the District Authority to finish its inquiry as quickly as possible and within three months of receiving the application.
Hold the licence before you fill the tank
Storage above the free limits can start only after the licence is granted. In practice, start the NOC the week you finalise the site, not the week the tanker is due.
Renew before the expiry date
Every licence carries an expiry date. Apply for renewal before that date so your storage is never unlicensed.
What happens if you store without a licence
Prosecution under Section 23
Storing petroleum without a licence, or in breach of its conditions, is an offence under Section 23 of the Petroleum Act, 1934, with imprisonment, fine or both.
Breaking conditions counts too
Section 23 also covers breaching licence conditions, obstructing an inspection and failing to report an accident. A licence on the wall is not enough; the site has to match it.
The NOC can be refused
If the District Authority objects, Rule 144(4) says the licence cannot be issued without the Central Government’s sanction. A careless site plan can cost months.
Frequently asked questions
Do I need a PESO licence to store diesel at my factory?
Only if you store more than 2,500 litres. Section 7 of the Petroleum Act, 1934 lets you store up to 2,500 litres of Class B petroleum, which normally includes high-speed diesel, without a licence, as long as no single container holds more than 1,000 litres. Above that, you need a Form XV licence under the Petroleum Rules, 2002. Check your tank sizes once and you will know where you stand.
How much petrol can I keep without a licence?
Up to 30 litres, if it is not meant for sale. Section 8 of the Petroleum Act, 1934 exempts Class A petroleum up to 30 litres, kept in glass or stoneware containers of up to one litre or metal containers of up to 25 litres, properly sealed. Anything more, or any petrol you plan to sell, needs a licence. For a workshop that only fuels its own equipment, the exemption is usually enough.
Who issues the NOC and how long does it take?
The District Authority issues it, usually the District Magistrate. Under Rule 144 of the Petroleum Rules, 2002, you apply with two copies of the site plan, and the NOC comes back with a plan endorsed under official seal. Rule 144(5) gives the District Authority a maximum of three months to finish its inquiry. A clean site plan with the correct safety distances keeps the inquiry short.
What if the District Authority objects to our site?
The licence can then be issued only with the Central Government’s sanction. That is the rule in Rule 144(4) of the Petroleum Rules, 2002. In practice, most objections are about safety distances, access roads or nearby buildings, and are better fixed in the site plan than argued later. We review the plan with your engineer before it goes in, so problems surface early.
Which licence does a petrol pump or CNG station need?
A petrol pump needs a Form XIV licence under the Petroleum Rules, 2002. A CNG station needs a Form G licence under the Gas Cylinders Rules, 2016. A combined outlet selling both needs both. Storage tanks away from a retail outlet, such as a factory diesel yard, need Form XV instead. We confirm the exact forms after looking at your layout, so nothing is missed.
Is a PESO licence the same as a fire NOC?
No. They come from different authorities under different laws. PESO licenses the storage of petroleum, gases and explosives under central rules. In Haryana, fire safety approval comes from the fire department under the Haryana Fire and Emergency Services Act, 2022, which requires a fire-fighting scheme approval for industrial buildings with more than 500 sq m on any floor. Most fuel installations need both, and we plan them together.
Does Taxhint do the inspection or testing?
No. PESO officers carry out inspections, your engineer or fabricator prepares the drawings, and pressure vessels and cylinders are tested by the competent persons and testing stations the rules recognise. Our role is the paperwork side: the application, documents, NOC follow-up, online filing, replies to PESO queries and renewal tracking. You deal with one team for the paperwork, start to finish.
How is petroleum classified for licensing?
By flash point, under Section 2 of the Petroleum Act, 1934. Class A has a flash point below 23°C. Class B is 23°C and above but below 65°C. Class C is 65°C and above but below 93°C. Petrol is Class A, diesel is usually Class B and furnace oil usually Class C. The supplier’s safety data sheet shows the flash point, so classifying your stock takes minutes.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
PESO’s own fee depends on the licence form, the class of product and the quantity. PESO publishes a fee calculator on peso.gov.in, and we use it to give you the exact government fee upfront.
Ready to begin?
Tell us what you store and how much, and we will map the PESO licence, the NOC and the papers you need.