Introduction — A Real Business Story
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.
What is a PESO License?
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:
- The Petroleum Act, 1934
- The Petroleum Rules, 2002
- The SMPV (U) Rules, 2016 (Static and Mobile Pressure Vessels)
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.
Who Needs a PESO License?
A PESO license is mandatory for:
- Petroleum and diesel storage depots, fuel retail outlets, and service stations
- Industrial users storing HSD, Furnace Oil, Solvents, or LDO above threshold limits
- LPG bottling plants, distributors, and industrial LPG consumers
- Cylinder filling, re-testing, or distribution units
- Gas and petroleum transportation tankers or mobile pressure vessels
- Warehouses handling any flammable or compressed gas products
If you handle even a few thousand litres of petroleum or LPG, chances are you fall under the PESO framework.
Petroleum Classes and Storage Thresholds
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:
- Small diesel generator tanks under 5,000 litres need no license, but must inform the district authority.
- Fuel stations, tank farms, or depots storing above these limits require Form XIV or XV under Petroleum Rules, 2002.
LPG and SMPV (U) Licensing Requirements
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.
Documents Required for PESO Licensing
Before you apply, prepare the following documents carefully:
- Site layout plan and tank drawings with marked safety distances
- Ownership or lease agreement of land
- Approval of design and fabrication from an authorized Competent Person
- Valid CTE (Consent to Establish) and CTO (Consent to Operate) from SPCB
- Fire protection system details (hydrant, water ring main, extinguishers)
- Calibration certificates of pressure gauges and valves
- Proof of authorized signatory (PAN, Aadhaar, GST)
- Undertaking on occupational and fire safety compliance
Incomplete documentation is the most common reason for delays or rejections.
How to Apply for a PESO License
- Site Approval: Submit site layout and plant drawings to PESO for preliminary clearance.
- Application Filing: Apply online via the official PESO portal using the relevant form (XIV, XV, III, VII, etc.).
- Inspection & Verification: PESO conducts physical or video inspection of facilities to ensure compliance.
- Grant of License: Once verified, a digital PESO certificate is issued, valid for 3–5 years.
- Renewal: Apply for renewal at least 30 days before expiry to avoid suspension.
Fee Structure (Indicative Range)
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.
Safety Standards and Layout Compliance
PESO strictly follows the safety norms of the Oil Industry Safety Directorate (OISD) and National Building Code (NBC).
Key Safety Design Norms:
- Minimum separation distances between tanks, boundary walls, and ignition sources.
- Fire water ring main, hydrant system, and minimum fire extinguishers.
- Earthing and lightning protection for tanks and dispensers.
- Pressure relief valves and gas detection systems for LPG installations.
- Adequate ventilation and spill containment.
Following these safety standards reduces insurance premiums and minimizes inspection risks.
Validity, Renewal, and Timelines
- Initial License Validity: 3 to 5 years depending on facility type.
- Renewal Period: Must apply at least 30 days before expiry.
- Inspection Timeline: Typically completed within 30–60 working days post submission.
- Amendment Cases: Name, ownership, or layout changes require separate PESO approval.
Risks of Non-Compliance
Failing to obtain or renew a valid PESO license can have serious consequences:
- Immediate sealing or suspension of operations.
- Heavy fines under the Petroleum Act, 1934.
- Cancellation of insurance claims in case of accidents.
- Personal liability of directors for fire, injury, or environmental hazards.
- Loss of business credibility with clients and authorities.
Maintaining compliance not only protects your facility but also demonstrates commitment to worker and community safety.
Why Businesses Trust Green Permits
At Green Permits Consulting, we simplify the entire compliance lifecycle — from site audit to certification and renewal.
Our PESO experts help you with:
- Technical documentation, layout & fire safety plan preparation
- Filing applications on the official PESO portal
- Coordination with PESO & District Authorities
- Renewals, amendments, and capacity expansion approvals
- Compliance support for multi-location storage facilities
We also assist with other related regulatory services:
Conclusion — Compliance is Protection
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.
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FAQs
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.