Earlier this year, a manufacturing unit in Pune faced an unexpected shutdown after their diesel storage facility was found operating with an expired PESO license. What they thought was a small administrative issue cost them over ₹12 lakhs in penalties and business losses — all because of a missed compliance renewal.
This is a common reality for businesses handling petroleum, diesel, kerosene, or LPG. The Petroleum and Explosives Safety Organization (PESO) regulates all such operations to ensure safe handling, storage, and transportation of flammable substances across India.
If your business stores or distributes petroleum or LPG, a PESO license isn’t optional — it’s mandatory for safety, business continuity, and legal protection.
The Petroleum and Explosives Safety Organization (PESO), under the Department for Promotion of Industry and Internal Trade (DPIIT), enforces safety standards for hazardous substances under:
A PESO license is an official authorization for any entity storing, handling, or transporting petroleum products, compressed gases, or LPG beyond specific safety thresholds.
This license ensures your facility meets all technical, safety, and environmental requirements before operations begin.
A PESO license is mandatory for:
If you handle even a few thousand litres of petroleum or LPG, chances are you fall under the PESO framework.
PESO categorizes petroleum into three main classes based on their flash points.
| Class | Type of Petroleum | Flash Point | License Requirement | Exemption Limit | District Authority Limit |
|---|---|---|---|---|---|
| Class A | Petrol, Naphtha | Below 23°C | Mandatory | Up to 30 Litres | 30–300 Litres |
| Class B | Kerosene, Solvents | 23°C–65°C | Mandatory | Up to 2,500 Litres | 2,500–25,000 Litres |
| Class C | Diesel, Furnace Oil, LDO | 65°C–93°C | Conditional | Up to 45,000 Litres | Above 5,000 Litres requires prior report |
Simple interpretation:
For LPG, propane, and other compressed gases, the governing law is the Static and Mobile Pressure Vessels (Unfired) Rules, 2016.
These apply to all industries that store, fill, or use pressure vessels for LPG or other gases.
| Installation Type | Applicable Form | Rule Reference | Key Requirement |
|---|---|---|---|
| LPG Bottling Plant | Form III / Form V | SMPV(U) Rule 43 | Requires plan approval and pressure vessel design certificate |
| Industrial LPG Storage | Form VII / VIII | Rule 22 & Table-5 | Maintain minimum safety distances and firefighting systems |
| Auto-LPG Dispensing / Filling Station | Form X / XII | Rule 61–64 | Needs approved layout, competent person certificate |
| Cylinder Testing / Filling Unit | Gas Cylinder Rules (Forms E/F/G) | GCR-2016 | Testing, calibration & operator training mandatory |
Key takeaway:
Every LPG storage vessel, whether static or mobile, must be certified by a PESO-approved Competent Person and comply with OISD safety standards for design and installation.
Before you apply, prepare the following documents carefully:
Incomplete documentation is the most common reason for delays or rejections.
| Category | Type | Approx. Government Fee (₹) | Validity |
|---|---|---|---|
| Petroleum Storage | Form XIV / XV | ₹5,000 – ₹20,000 | 3 Years |
| LPG Bottling / Industrial Storage | Form III / VII | ₹10,000 – ₹50,000 | 3–5 Years |
| Cylinder Testing Station | Form E/F | ₹15,000 – ₹25,000 | 5 Years |
| License Amendment or Name Change | – | ₹3,000 | – |
Actual fees vary by capacity, quantity, and region.
PESO strictly follows the safety norms of the Oil Industry Safety Directorate (OISD) and National Building Code (NBC).
Key Safety Design Norms:
Following these safety standards reduces insurance premiums and minimizes inspection risks.
Failing to obtain or renew a valid PESO license can have serious consequences:
Maintaining compliance not only protects your facility but also demonstrates commitment to worker and community safety.
At Green Permits Consulting, we simplify the entire compliance lifecycle — from site audit to certification and renewal.
Our PESO experts help you with:
We also assist with other related regulatory services:
Obtaining a PESO license is not just a regulatory task — it’s a long-term investment in operational safety and brand trust. From small-scale industrial users to large refineries, every business dealing with petroleum or LPG must ensure strict adherence to PESO standards.
Early compliance protects your people, your property, and your reputation.
📞 +91 78350 06182 📧 wecare@greenpermits.in
Book a Consultation with Green Permits
It ensures that petroleum and LPG storage facilities meet all safety and environmental norms, minimizing risk to people and property.
Usually between 3–5 years, depending on the category and capacity.
No, up to 5,000 litres of Class-C diesel storage is exempt, but prior intimation is required.
No. Unauthorized storage or handling of petroleum or LPG is punishable under the Petroleum Act and can lead to closure or imprisonment.
The average processing time is 30–60 days after complete document submission and inspection.
