Businesses involved in the storage of petroleum products in India may need to obtain a PESO License for Petroleum Storage before commencing operations — but whether a licence is required at all, and which one, depends on the petroleum class, quantity, storage method, and nature of the installation. Two businesses storing the same fuel can sit on opposite sides of the licensing threshold simply because of a difference in tank capacity or storage configuration.
The Petroleum and Explosives Safety Organisation (PESO) regulates the important safety aspects associated with petroleum, including its storage, transportation, import and handling, primarily under the Petroleum Rules, 2002. Understanding which PESO licence applies to your petroleum storage facility — or whether one applies at all — is the essential first step before finalising a site design or capital investment.
A PESO License for Petroleum Storage is a regulatory authorisation issued under the Petroleum Rules, 2002 for specified petroleum storage activities. PESO uses different licence forms for different activities — including Form XIV (storage tanks connected to a pump for fuelling motor vehicles), Form XV (import and storage of petroleum in an installation), and Form XVI (import and storage of petroleum otherwise than in bulk, above specified thresholds). Not every facility requires a licence — smaller quantities of certain petroleum classes may fall under an exemption, subject to conditions.
📑 Quick Navigation
- What Is a PESO License for Petroleum Storage?
- When Is a PESO License Required?
- Petroleum Classes Under PESO Regulations
- Types of PESO Petroleum Storage Licences
- Application Process
- Documents Required
- Why Technical Drawings Matter
- Common Application Mistakes
- Benefits of Getting It Right
- How Rego Services Can Help
- Frequently Asked Questions
What Is a PESO License for Petroleum Storage?
A PESO License for Petroleum Storage is a regulatory authorisation issued under the Petroleum Rules, 2002 for specified petroleum storage activities. PESO's current Standard Operating Procedure identifies several distinct forms for different petroleum-related activities:
For storing petroleum in tanks connected with a pump outfit for fuelling motor conveyances — relevant to petroleum dispensing stations and fuelling facilities.
For importing and storing petroleum in an installation, with different licensing authorities depending on the applicant — Head Office for PSU Oil Marketing Companies, Circle Offices for other applicants.
For importing and storing petroleum otherwise than in bulk, where specified quantity thresholds are exceeded — thresholds vary by petroleum class.
A Special Form may apply for importing and storing petroleum of any class, depending on the specific circumstances of the application.
Businesses should not assume that every petroleum storage facility requires the same PESO licence — the correct form depends on the class of petroleum, the storage quantity, and whether the activity involves bulk or non-bulk storage.
When Is a PESO License Required for Petroleum Storage?
The requirement depends on several factors, particularly:
Class A, B, or C — determined by flash point and fire hazard.
Thresholds differ by class and affect whether a licence or prior report is required.
Bulk tanks and non-bulk containers are treated differently under the Rules.
Underground tanks, above-ground tanks, and drums each carry different considerations.
Captive industrial use, dispensing for vehicles, and bulk distribution are treated differently.
Whether petroleum is imported, and the nature and location of the installation, both affect applicability.
Petroleum Classes Under PESO Regulations
Petroleum is classified for regulatory purposes under the Petroleum Rules, 2002, and the applicable licensing requirements differ between classes.
- Products with a low flash point, presenting a higher degree of fire hazard
- Subject to the most stringent safety and licensing requirements
- Requirements depend on quantity, installation and storage arrangement
- Higher flash point than Class A, but still a significant fire hazard
- Can include certain petroleum fuels and industrial petroleum products
- PESO provides specific quantity-based exemption guidance for this class
- Higher flash point than both Class A and Class B
- Can include products such as certain furnace oils and LDO
- Specific quantity limits and prior-report requirements apply
Types of PESO Petroleum Storage Licences
The appropriate PESO License for Petroleum Storage depends on the nature of the operation. PESO identifies quantity thresholds for Form XVI applicability, for example:
| Petroleum Class | Form XVI Threshold (Non-Bulk Storage) |
|---|---|
| Class A | Exceeding 300 litres |
| Class B | Exceeding 25,000 litres |
| Class C | Exceeding 45,000 litres |
The exact applicability should always be assessed against the current Petroleum Rules and the proposed storage arrangement rather than assumed from a general table. A fuelling installation dispensing directly to vehicles typically falls under Form XIV, a bulk import and storage installation typically falls under Form XV, and non-bulk storage above the relevant class threshold typically falls under Form XVI.
Not sure which form applies to your storage facility?
Talk to a Compliance ProfessionalPESO License for Petroleum Storage: Application Process
PESO's current FAQ states that applicants should first register on the National Single Window System (NSWS), then proceed to the PESO website, select the Petroleum Rules section, and choose the relevant form for approval, grant, renewal or amendment — uploading required documents and paying applicable fees online.
Determine the exact petroleum product proposed to be stored and its applicable petroleum class.
Determine the maximum quantity that will be stored at the premises, since licensing requirements can change according to storage quantity.
Establish whether petroleum will be stored in bulk tanks, drums or containers, underground tanks, above-ground tanks, or an installation connected with dispensing equipment.
Based on the petroleum class, quantity and storage configuration, determine whether Form XIV, Form XV, Form XVI, or another approval/licence is applicable.
Compile technical drawings, site information, tank details, safety arrangements and other supporting documentation as required for the licence category.
Register on NSWS, then submit the application through the applicable online PESO process with the required documents and prescribed fee.
Where applicable, the installation may be subject to inspection or technical verification before the licence is granted.
Once the regulatory requirements are satisfied and the application is approved, the applicable PESO License for Petroleum Storage is issued.
Documents Required for PESO Petroleum Storage Licence
The exact document checklist depends on the licence category and installation. Generally, businesses should be prepared with the following.
- Applicant/company details — legal entity and authorised signatory information
- Proof of ownership or occupancy of the premises
- Site and layout plans showing the proposed installation
- Storage tank details, including capacity and specifications
- Petroleum product details and classification
- Safety and fire protection arrangements
- Installation drawings and equipment specifications
- Relevant certificates and technical documents
- Applicable statutory permissions from other authorities where relevant
- Application forms and declarations in the prescribed format
The final checklist should always be confirmed against the applicable PESO procedure, since documentation requirements can differ between licence categories.
Need help preparing your petroleum storage application?
Contact Rego ServicesWhy Technical Drawings Are Important
Petroleum storage is a safety-sensitive activity. The proposed installation needs to demonstrate appropriate separation, storage arrangements, and safety provisions before a licence can be granted. Technical drawings help the licensing authority evaluate the proposed installation and verify whether the layout complies with applicable regulatory and safety requirements. Submitting incomplete or inconsistent drawings is one of the most common causes of application queries and delays.
Common Mistakes in PESO Petroleum Storage Applications
Businesses can face avoidable delays when they begin the application without first determining the correct regulatory category.
Different petroleum storage activities require different forms. Selecting a form simply because another business uses it can result in an incorrect application.
Storage quantity should be calculated accurately, since quantity thresholds affect whether a licence or prior report is required.
The proposed storage installation should be represented accurately and completely in the required drawings.
Tank capacity, product details and site drawings should remain consistent throughout the application.
PESO periodically publishes new circulars, procedures, and online modules — including updates to how automotive fuel dispensing station applications are filed. Always verify the current process before filing.
Benefits of Obtaining the Correct PESO Licence
Operating the petroleum storage facility within the prescribed regulatory framework.
Licensing requirements are built around fire, spill, and safety risk mitigation.
Correct form selection and documentation reduce the likelihood of scrutiny queries.
A properly documented installation supports smoother renewals and amendments.
Facilities matching their approved drawings face fewer inspection observations.
Supports continued, uninterrupted operation of the petroleum storage facility.
How Rego Services Can Help
Applying for a PESO License for Petroleum Storage can involve technical, regulatory and documentation requirements that vary by facility. Rego Services can assist businesses with:
- Identifying the applicable PESO licence category — Form XIV, XV, XVI, or Special Form
- Understanding petroleum storage requirements against the current Petroleum Rules, 2002
- Reviewing the proposed storage facility against applicable thresholds and safety requirements
- Preparing documentation — company, site, and technical information
- Coordinating technical drawings and supporting documents
- Application preparation and filing via NSWS and the PESO portal
- Responding to application queries raised during scrutiny
- Tracking the approval process through to licence issuance
- Supporting licence-related compliance after approval, including renewal planning
The exact scope of assistance depends on the petroleum product, storage capacity, installation, and applicable PESO requirements — this is professional assistance throughout the process, not a guarantee of licence approval, which remains at PESO's discretion.
Frequently Asked Questions
Is a PESO licence mandatory for petroleum storage?
Not necessarily for every quantity and type of petroleum. PESO provides specific exemptions and thresholds under the Petroleum Rules, 2002. For example, certain Class B storage quantities may fall below the licensing threshold, while Class C storage may require a prior report above specified quantities.
Which licence is required for petroleum storage?
There is no single licence for every petroleum storage facility. Depending on the activity, licences can include Form XIV, Form XV and Form XVI, among others.
How do I apply for a PESO petroleum storage licence?
PESO's current FAQ directs applicants to register on NSWS and then proceed through the PESO online process for the relevant Petroleum Rules form, uploading the required documents and paying the applicable fee.
Is PESO approval required for Class C petroleum storage?
The requirement depends on the quantity and circumstances. PESO states that Class C storage exceeding 5,000 litres requires a prior report under Rule 140, while its guidance states that no licence is required for storage up to 45,000 litres in bulk, subject to the applicable rules and conditions.
How long does a PESO petroleum storage licence take?
The timeline can vary depending on the licence category, completeness of documentation, technical review, inspection requirements and regulatory queries. Businesses should not rely on a fixed timeline without assessing the specific application.
✓ Key Takeaways
- A PESO License for Petroleum Storage is a regulatory authorisation under the Petroleum Rules, 2002 — not a single universal licence
- Key licence forms include Form XIV (fuelling installations), Form XV (import/storage installations), and Form XVI (non-bulk import/storage above class thresholds)
- Petroleum is classified into Class A, B and C, each with different fire-hazard profiles and licensing thresholds
- Some quantities — for example, certain Class B storage up to 2,500 litres non-bulk / 1,000 litres bulk — may fall under an exemption, subject to conditions
- Class C storage exceeding 5,000 litres requires a prior report under Rule 140, even where a full licence may not be required up to 45,000 litres in bulk
- Applications generally begin with NSWS registration, followed by the applicable form on the PESO portal
- Technical drawings, accurate quantity classification, and consistent documentation are the most common determinants of a smooth application
Conclusion
A PESO License for Petroleum Storage is an important regulatory requirement for many businesses handling petroleum products in India. However, the applicable licence is determined by factors such as petroleum class, storage quantity, bulk or non-bulk storage, installation type, and intended activity. Businesses should first identify the correct regulatory category under the Petroleum Rules, 2002, determine the applicable licence form, and then prepare the technical and documentary requirements accordingly.
For the latest requirements, verify the applicable rules, procedures and notifications directly with PESO before submitting an application. Contact Rego Services for PESO Compliance Assistance to discuss your specific petroleum storage requirement.
Rego Services Compliance Team
August 2026