Liquefied Petroleum Gas (LPG) is a flammable and hazardous gas, so its storage is subject to specific safety and regulatory requirements in India. Businesses that store LPG cylinders or maintain bulk LPG storage installations may need a PESO License for LPG Storage before commencing operations — and unlike a single generic certificate, the applicable licence depends heavily on whether LPG is stored in cylinders or in fixed pressure vessels.
The Petroleum and Explosives Safety Organisation (PESO) regulates safety aspects relating to compressed gases, including LPG. PESO's official FAQ specifically states that a licence is required for storing LPG in cylinders, subject to a limited exemption for quantities not exceeding 100 kg at a time for specified own-use, distribution or sale situations. Getting the storage model — cylinders versus pressure vessels — and the corresponding licence right from the outset avoids rework on drawings, safety arrangements and documentation later.
A PESO License for LPG Storage is an authorisation issued under the applicable gas-cylinder or pressure-vessel regulatory framework for the safe storage of LPG. LPG cylinders stored in a godown fall generally under the Gas Cylinders Rules, 2016. LPG stored in fixed pressure vessels for filling cylinders falls under the SMPV(U) Rules, 2016 (Form LS-1A), while Auto LPG storage for automotive fuel dispensing falls under Form LS-1B. A licence is generally required for LPG cylinder storage, with an exemption for quantities up to 100 kg at a time in specified situations, subject to conditions.
📑 Quick Navigation
- What Is a PESO License for LPG Storage?
- Is a PESO License Mandatory?
- LPG Storage Under Gas Cylinders Rules, 2016
- LPG Storage in Pressure Vessels
- Types of LPG Storage Facilities
- Key Requirements
- How Should LPG Cylinders Be Stored?
- Application Process
- Documents Required
- Licence Fees
- Validity & Renewal
- Cylinder Testing & Safety Compliance
- Common Mistakes
- How Rego Services Can Help
- Frequently Asked Questions
What Is a PESO License for LPG Storage?
A PESO License for LPG Storage is an authorisation issued under the applicable gas-cylinder or pressure-vessel regulatory framework for the safe storage of LPG. The applicable licence depends on the type of LPG storage facility:
Generally covered under the Gas Cylinders Rules, 2016.
LPG stored in fixed pressure vessels for filling cylinders is covered under the SMPV(U) Rules, 2016.
Auto LPG storage in a pressure vessel for automotive fuel dispensing is also covered under the SMPV(U) framework.
LPG bottling plants require the appropriate PESO licence to fill compressed gas into cylinders.
Businesses should first identify their LPG storage model — cylinder godown, bottling plant, bulk pressure vessel, or Auto LPG dispensing — before selecting the applicable licence form.
Is a PESO License Mandatory for LPG Storage?
For LPG cylinders, PESO's official FAQ states that a licence is required for storing LPG in cylinders. However, there is an exemption where the total LPG quantity does not exceed 100 kg at a time for own use, distribution or sale from a sales room belonging to the respective oil marketing company dealer or distributor.
LPG Storage Under Gas Cylinders Rules, 2016
When LPG is stored in cylinders, the Gas Cylinders Rules, 2016 are particularly relevant. PESO provides a specific licensing framework for filling and storing compressed gases in cylinders. Its official Gas Cylinder Rules resources include Form C for applications relating to the grant, amendment or renewal of a licence to fill and/or store compressed gas in cylinders.
For an LPG cylinder storage godown, the business must evaluate the applicable provisions of the Gas Cylinders Rules and the prescribed PESO licensing process before commencing storage.
LPG Storage in Pressure Vessels
LPG storage is not limited to cylinders. Industrial facilities, LPG bottling plants and other installations may store LPG in static pressure vessels. PESO's SOP under the SMPV(U) Rules, 2016 specifically identifies:
Form LS-1B — Storage of Auto LPG in a pressure vessel for dispensing as automotive fuel.
This distinction is important because a bulk LPG installation cannot simply follow the same compliance process as a small cylinder storage godown — the applicable form, technical review, and safety-distance requirements differ.
Not sure whether your facility needs Form C, Form F, LS-1A or LS-1B?
Talk to a Compliance ProfessionalTypes of LPG Storage Facilities
Used for storing filled LPG cylinders before distribution or sale. PESO's FAQ confirms cylinder storage requires a licence, subject to the 100 kg exemption.
Receives LPG, stores it, and fills it into cylinders. LPG can only be filled at a plant holding the appropriate licence to fill compressed gas in cylinders (Form F).
Industrial facilities storing LPG in fixed pressure vessels rather than individual cylinders — falls within the SMPV(U) Rules, 2016 (Form LS-1A).
Auto LPG dispensing facilities have their own regulatory requirements, identified under Form LS-1B of the SMPV(U) SOP.
Key Requirements for PESO LPG Storage Licence
The exact requirements depend on the facility type, but businesses should generally be prepared to demonstrate compliance with technical and safety requirements relating to:
LPG quantity, cylinder count, or pressure-vessel capacity as applicable.
Layout, storage shed or installation design, and safety distances.
Fire-fighting arrangements and ventilation for the storage area.
Electrical safety measures and earthing appropriate to hazardous storage areas.
Emergency access and response arrangements for the site.
Technical drawings and applicable statutory permissions, inspection and testing requirements.
The final requirements should always be determined from the applicable PESO rules, forms, SOPs and current regulatory directions for your specific facility.
How Should LPG Cylinders Be Stored?
Proper cylinder positioning is an important part of LPG storage safety. PESO's official FAQ states that LPG cylinders and cylinders containing liquefiable gases should always be kept upright and positioned so that they cannot be knocked over. This requirement is particularly important for LPG godowns and other premises where multiple cylinders are stored — businesses should ensure cylinders are handled and stored in accordance with applicable safety requirements rather than treating them like ordinary inventory.
PESO LPG Storage Licence Process
The process can vary depending on whether the facility involves cylinder storage, LPG bottling, bulk pressure-vessel storage, or Auto LPG. A typical compliance workflow follows these stages.
Determine whether you're dealing with LPG cylinders, an LPG cylinder godown, an LPG bottling plant, a bulk LPG pressure vessel, or an Auto LPG installation — this determines the applicable regulatory framework and licence form.
Calculate the maximum LPG quantity proposed to be stored — cylinder configuration for cylinder storage, or pressure-vessel capacity for bulk storage.
Depending on the installation, the Gas Cylinders Rules, 2016 and/or SMPV(U) Rules, 2016 may apply.
Site plan, layout drawing, storage arrangement, cylinder or vessel details, safety equipment details, fire protection arrangements, and ownership/occupancy documents.
Submit the application using the applicable PESO form and online procedure.
PESO may review the submitted technical information and conduct inspection or verification of the installation.
After the applicable technical, documentary and safety requirements are satisfied, PESO may grant the relevant licence.
Documents Required for LPG Storage Licence
The exact checklist depends on the facility and licence type. Common documentation can include:
- Applicant/company details and proof of premises
- Site ownership or occupancy documents
- Site layout plan and storage shed drawing
- LPG cylinder details, or pressure-vessel details where applicable
- Storage capacity information
- Safety equipment details and fire-fighting arrangements
- Technical drawings
- Relevant inspection/test certificates
- Local authority NOC, where applicable
- Application forms and prescribed fee documentation
For an LPG cylinder godown used for sale and trading, PESO's FAQ states that an NOC is required and identifies the local body — such as a Gram Panchayat or urban local body — as the NOC-granting authority.
Need help preparing your LPG storage application?
Contact Rego ServicesPESO LPG Storage Licence Fees
PESO's official FAQ provides fee slabs for LPG stored in cylinders:
| LPG Quantity | Fee |
|---|---|
| Above 100 kg up to 500 kg | ₹1,000 |
| Above 500 kg up to 2,000 kg | ₹2,000 |
| Above 2,000 kg up to 5,000 kg | ₹4,000 |
| Above 5,000 kg up to 10,000 kg | ₹6,000 |
| Above 10,000 kg | ₹2,000 for every additional 5,000 kg or part thereof |
Validity and Renewal of LPG Storage Licence
PESO's official FAQ states that a licence for storage of LPG cylinders can be renewed up to 10 years. It also states that an LPG cylinder storage licence can be transferred, subject to submission of the documents required under the applicable rules. Businesses should maintain a compliance calendar so that renewal and other regulatory obligations are not missed.
LPG Cylinder Testing and Safety Compliance
LPG storage compliance does not end once the licence is obtained. PESO's FAQ states that LPG cylinders are subject to periodical testing every 10 years. PESO has also issued recent regulatory updates concerning cylinders, including requirements relating to permanent, tamper-proof barcode/QR codes and compliance with amendments to the Gas Cylinders Rules. This demonstrates why LPG businesses should monitor regulatory updates even after obtaining their licence — always confirm the current requirements against PESO's official circulars.
Common Mistakes in LPG Storage Licensing
Cylinder storage and bulk pressure-vessel storage are not necessarily covered by the same licence.
The declared LPG quantity should match the actual proposed storage capacity.
The layout should accurately represent the storage area, access, and safety equipment.
For LPG godowns used for sale and trading, the applicable local-body NOC should be part of the compliance process.
Cylinders must be kept upright and secured against being knocked over.
PESO periodically updates the Gas Cylinders Rules and related circulars — regulatory monitoring is essential for LPG-related businesses.
How Rego Services Can Help With PESO LPG Storage Licence
Obtaining a PESO License for LPG Storage requires careful assessment of the storage facility and applicable regulatory framework. Rego Services can assist businesses with:
- Identifying the applicable PESO licence — Form C, Form F, LS-1A, or LS-1B
- Assessing LPG storage requirements against the current Rules
- Reviewing storage capacity and facility details
- Preparing application documentation
- Coordinating technical drawings
- Supporting documentation for local permissions, including NOCs
- Preparing and filing the PESO application
- Handling application queries
- Supporting inspection coordination
- Assisting with licence renewal and amendments
The exact compliance requirements depend on the LPG storage model, quantity, equipment and location — this is professional assistance throughout the process, not a guarantee of licence approval, which remains at PESO's discretion.
Frequently Asked Questions
Is PESO licence required for LPG cylinder storage?
Yes, generally. PESO states that a licence is required for storing LPG in cylinders, with a specific exemption for quantities not exceeding 100 kg at a time under the conditions stated in its FAQ.
What licence is required for LPG storage in a pressure vessel?
For storage of LPG for filling in cylinders under the SMPV(U) framework, PESO's current SOP identifies Form LS-1A. Auto LPG storage in a pressure vessel for automotive fuel dispensing is identified under Form LS-1B.
Is an NOC required for an LPG godown?
For an LPG cylinder godown used for sale and trading, PESO states that an NOC is required and identifies the local Gram Panchayat or urban local body as the granting authority.
How should LPG cylinders be stored?
LPG cylinders should be kept upright and positioned so they cannot be knocked over, according to PESO's official guidance.
How long can an LPG storage licence be renewed?
PESO's FAQ states that an LPG cylinder storage licence can be renewed up to 10 years.
Can LPG be filled into cylinders anywhere?
No. PESO's FAQ states that LPG can only be filled into cylinders at an LPG bottling plant holding the appropriate PESO licence for filling compressed gas in cylinders.
✓ Key Takeaways
- A PESO License for LPG Storage depends on the storage model — cylinders fall under the Gas Cylinders Rules, 2016; bulk pressure vessels fall under the SMPV(U) Rules, 2016
- LPG cylinder storage generally requires a licence, with an exemption for quantities up to 100 kg at a time in specified situations
- Key forms include Form C (fill/store compressed gas in cylinders), Form F (LPG bottling), Form LS-1A (bulk LPG for cylinder filling), and Form LS-1B (Auto LPG dispensing)
- LPG cylinders must be stored upright and secured against being knocked over
- An LPG godown used for sale and trading requires a local-body NOC in addition to the PESO licence
- LPG cylinder storage licences can generally be renewed up to 10 years, and cylinders undergo periodical testing every 10 years
- Government fee slabs for cylinder storage are published by PESO and should be verified against the current schedule before filing
Conclusion
A PESO License for LPG Storage is an important compliance requirement for businesses involved in storing LPG cylinders or maintaining bulk LPG storage installations. The correct licensing route depends on the type of LPG storage, quantity, cylinder or pressure-vessel arrangement, purpose of the facility, and applicable regulatory framework. For LPG cylinder godowns, the Gas Cylinders Rules, 2016 are particularly relevant; for bulk LPG storage in pressure vessels, the SMPV(U) Rules, 2016 apply, with PESO identifying different licence forms for different applications.
Before starting an LPG storage operation, identify the correct licence category, prepare compliant technical documentation, and verify the latest PESO requirements. Contact Rego Services for PESO Compliance Assistance to discuss your specific LPG storage requirement.
Rego Services Compliance Team
August 2026