PESO licensing for petroleum, gases, explosives and ammonium nitrate
Who this applies to
- You store or handle petroleum Class A, B or C (diesel, furnace oil, LDO, petrol and similar) above the exempted quantity for that class: the Petroleum Rules 2002 is your regime.
- You store or transport compressed gas in a pressure vessel with a water capacity over 1,000 litres, including LPG bullets, LNG/LCNG dispensing installations, or bulk cryogenic gas: the Static and Mobile Pressure Vessels (Unfired) Rules 2016 is your regime. A CNG, nitrogen or compressed-air container can still fall inside the Gas Cylinder Rules definition of a cylinder up to 3,000 litres water capacity, if its diameter does not exceed 60 cm. That is a definition, not a licensing exemption.
- You fill, possess or store gas cylinders, ordinarily water capacity up to 1,000 litres each (LPG cylinders included): the Gas Cylinder Rules 2016 is your regime. The 3,000-litre figure above is that definition for those gases, subject to the diameter condition. It does not exempt the cylinder from licensing.
Which regime are you in?
| Regime | Governs | Typical installations |
|---|---|---|
| Petroleum Rules 2002 | Import, storage and transport of petroleum Class A, B and C | DG set day tanks and diesel storage, bulk HSD/furnace oil/LDO tank farms, retail fuel stations, tank trucks |
| SMPV(U) Rules 2016 | Storage and transport of compressed gas in pressure vessels over 1,000 litres water capacity | LPG bullets, LNG/LCNG and auto-fuel dispensing installations, bulk cryogenic and compressed gas vessels, mobile pressure vessels |
| Gas Cylinder Rules 2016 | Filling, possession and storage of gas cylinders. Ordinary definition: up to 1,000 litres. CNG, nitrogen and compressed air remain cylinders up to 3,000 litres if the diameter does not exceed 60 cm. That is not a licensing exemption | Cylinder filling plants, LPG cylinder godowns, industrial gas cylinder storage |
A single facility can sit in more than one row at once: a plant with a diesel DG set, an LPG bullet and a cylinder store is in every regime in the table at once, each with its own licence.
Exempt quantities and the SMPV/GCR boundary
Petroleum exemptions. No licence is needed for petroleum Class A not intended for sale up to 30 litres, petroleum Class B (non-bulk) up to 2,500 litres held in receptacles up to 1,000 litres each, petroleum Class C in bulk up to 45,000 litres, or anything with a flash point at or above 93°C. This is the Petroleum Rules 2002's own restatement of the exemption in the Petroleum Act 1934, and it is the baseline every petroleum storage question in this section works from.
The SMPV/GCR boundary. The Static and Mobile Pressure Vessels (Unfired) Rules 2016 defines a "pressure vessel" as a closed container whose water capacity exceeds 1,000 litres. The Gas Cylinder Rules 2016 defines a "cylinder" as a container with water capacity up to 1,000 litres. For CNG, nitrogen or compressed air, that definition includes a cylinder of up to 3,000 litres water capacity if its diameter does not exceed 60 cm (Gas Cylinder Rules 2016). The 3,000-litre figure decides which definition the container meets. It is not a general licensing exemption, and it does not remove a licence the Rules otherwise require. For any other gas, a container over 1,000 litres is a pressure vessel under the SMPV(U) Rules.
LPG cylinder storage exemption. Under Gas Cylinder Rules 2016, rule 44, possession of LPG cylinders for one's own use doesn't need a licence provided the total weight of gas in possession doesn't exceed 100 kg at a time. The same rule sets different exemption quantities for other gas classes held for own use: other flammable, non-toxic gas up to 25 cylinders or 200 kg, whichever is less; non-flammable, non-toxic gas up to 200 cylinders; toxic gas up to 5 cylinders. Storage for sale or trade is licensable regardless of quantity, a distinct condition from the own-use exemption.
What a PESO approval covers
PESO, the Petroleum and Explosives Safety Organisation, sits under the Department for Promotion of Industry and Internal Trade (DPIIT). It administers several separate central regimes, and one licence does not cover another. The regimes most industrial sites meet are:
- Petroleum Rules 2002, made under the Petroleum Act 1934.
- Static and Mobile Pressure Vessels (Unfired) Rules 2016, made under the Explosives Act 1884.
- Gas Cylinder Rules 2016, made under the Explosives Act 1884.
These are all-India regimes. A Tamil Nadu facility's PESO approvals aren't scoped to Tamil Nadu: the same Rules, the same forms and the same Chief Controller of Explosives, Nagpur apply whether the site is in Chennai, Coimbatore, or anywhere else in the country. What actually differs by state is which District Authority handles the NOC step, and which state approvals run alongside PESO on their own independent clocks, covered in "Tamil Nadu interaction" below.
Licensing authority is delegated by form and by transaction, not fixed at a single office: the Chief Controller of Explosives at Nagpur, Circle and Sub-Circle offices, and, for a small set of low-quantity petroleum licences, the state District Authority. Each regime section below states exactly which office handles which transaction.
How a PESO approval moves
A PESO approval can pass through some or all of the stages below. Not every stage applies to every regime or licence form, and the regime sections that follow say where one does not.
- No Objection Certificate (NOC). A sign-off from the District Authority (or, for some Gas Cylinder Rules cases, a local body) obtained before the central application, required for most new licences but not all. Each regime section states its own exceptions.
- Approval of site and layout, and of drawings. Sought before construction begins: the proposed installation's layout, safety distances and protected-works clearance, checked against the Rules ahead of any physical build.
- Design and type approval. The vessel, cylinder, valve or regulator itself needs approval independent of the site: from workshop/fabricator approval through to design or type approval of the specific item being made.
- Licence grant. Issued once the application, drawings and any NOC are in order.
- Commissioning and completion clearance. Post-construction inspection, test certificates from a competent person or recognised inspector, and any check required before first filling or first receipt of product. Where in the sequence this sits differs by regime, covered in each section below.
- Renewal. Every PESO licence runs for a fixed maximum term and needs renewal before expiry, not an indefinite grant.
- Amendment. Covers a change of layout, a change of quantity, or a change of product, each of which needs the licence updated rather than left to drift from what's actually on site.
- Endorsement. A distinct step in some regimes: inspection confirming the premises match the licence before the licence takes effect. Not a step in every regime.
- Transfer. On change of licensee or occupier. A PESO licence doesn't automatically follow a change of ownership or operator.
- Penal action, suspension, cancellation and voluntary surrender. The licensing authority's response to non-compliance, and the process for closing out a licence no longer needed.
What it costs to get wrong
Storing, transporting, filling or manufacturing above the exempt quantities set out above, without a valid PESO licence or approval, breaches the applicable Rules read with the parent Act. A licence already held isn't immune either: PESO licences are liable to suspension and cancellation for breach of their conditions, and renewal itself can be refused where there's a compliance history behind the application. None of this is specific to one regime: the same exposure applies under each PESO regime on this page.
The process
Petroleum Rules 2002
| Use case | Licence / approval | What it covers | Applicable lifecycle transactions |
|---|---|---|---|
| DG set day tanks and diesel storage above exempt quantity | Form XIV (in-plant fuelling point, PESO Circle/Sub-Circle) or Form XIII (District Authority, up to 25,000 L) / Form XVI (PESO Circle, above 25,000 L) for storage without a fuelling outfit | Storage of diesel (petroleum Class B) in day tanks and bulk tanks for captive use | Grant, renewal, transfer, amendment; Form XIV also carries prior approval. NOC under rule 144 precedes Form XIV and XVI, not Form XIII (District Authority is already the licensing authority there) |
| Bulk HSD, furnace oil, LDO storage and tank farms | Form XV (installation/tank farm; PESO Circle Office, PSU oil marketing companies at Head Office) or prior intimation for Class C up to 45,000 L | Bulk storage installations and tank farms | Prior approval, grant, renewal, transfer, amendment. NOC under rule 144 precedes Form XV |
| Retail fuel stations | Form XV (underground storage/installation) | PESO's side of a retail outlet's storage tanks. A separate state Revenue Department retail-outlet approval also applies, not a PESO licence: see "Tamil Nadu interaction" | Same as Form XV above |
| Storage below central thresholds under District Authority licence | Form XII (Class A, up to 300 L) or Form XIII (Class B, up to 25,000 L) | Small-quantity storage where the District Authority is itself the licensing authority | Grant and renewal (three calendar years under rule 148). Amendment and transfer for these two forms are not stated here. No rule 144 NOC: the District Authority doesn't require a certificate from itself |
| Transport of petroleum, where licensable | Form XI (own tank trucks) or Form XIX (bulk, on-site refuelling of vehicles/equipment); both PESO Circle/Sub-Circle | Transport of petroleum by land | Grant, renewal, transfer, amendment, penal action (surrender/accident case). Rule 144 NOC does not apply to either form |
Renewal for every Petroleum Rules licence except Form III (water transport, one year under rule 33(2)) and Form XVII runs for a maximum of three calendar years (rule 148), and the renewal application must reach the licensing authority at least 30 days before expiry.
Endorsement doesn't apply here. PESO's own guidance is explicit: "there are no provisions under the Petroleum Rules, 2002 for inspection / endorsement of the premises." Commissioning-stage certification (the tank test certificate under rule 126, and the certificate of safety under rule 130) is checked before the licence is granted, not inspected afterward, which is the opposite sequencing from the endorsement-after-grant pattern in the SMPV(U) and Gas Cylinder regimes below.
Typical documents by licence type
Form XIV, XV and XVI applications (PESO-issued) typically need: the prescribed application form, a covering letter, an undertaking of legal possession of the land, a rule 144 NOC where applicable, scale drawings showing all facilities and protected works within 100 metres, the tank test certificate under rule 126, and the certificate of safety under rule 130. Form XI (transport) needs the vehicle's registration and fitness certificates, a type-approval letter and drawing for the vehicle, and its safety-fitting and hydro/pneumatic test certificates.
Worked example: diesel tanks (Class B petroleum)
High-speed diesel is petroleum Class B under the Petroleum Rules, so the exemption and licensing thresholds already set out under "Exempt quantities" above apply to it directly:
| Aggregate diesel on the premises | What applies |
|---|---|
| Up to 2,500 L, non-bulk (receptacles up to 1,000 L each) | Exempt: no PESO or District Authority licence |
| Above 2,500 L up to 25,000 L, non-bulk | District Authority licence, Form XIII |
| Above 25,000 L, or any bulk tank over 1,000 L capacity, beyond what Form XIII covers | PESO licence: Form XVI for storage, or Form XIV where there's a pump outfit for fuelling |
Two traps sit inside this table:
- The threshold is aggregate, not per-tank. The Rules' own exemption language is consistently phrased as the total quantity "in his possession" or "at any one time," not the size of any one tank. Splitting diesel across several smaller tanks doesn't take the premises as a whole below the threshold.
- A pump outfit changes the form, independent of volume. The moment diesel is dispensed through a pump into a vehicle or piece of equipment rather than simply stored, Form XIV (or Form XV, for a larger installation) applies rather than a plain storage licence, because the Rules license the fuelling arrangement itself, not just the tank behind it. This can matter even where the stored quantity alone would otherwise sit under a lower form's threshold.
Where diesel storage also crosses the Schedule 3 threshold quantity under the Manufacture, Storage and Import of Hazardous Chemicals Rules 1989, the MSIHC obligations covered on the hazardous chemicals page run in addition to, not instead of, the PESO licence above.
OISD safety standards
The Oil Industry Safety Directorate (OISD), under the Ministry of Petroleum and Natural Gas, publishes safety standards and recommended practices for the petroleum sector. Several OISD standards are referenced as accepted codes under the Petroleum Rules 2002 and the allied SMPV(U) and Gas Cylinder Rules, including OISD-STD-225 (storage, handling and dispensing at retail outlets) and OISD-STD-244 (storage and handling at depots and terminals).
OISD does not issue licences. Licensing stays with PESO throughout; OISD standards are design and operating baselines a PESO-licensed installation is expected to meet, not a separate approval to obtain. Where a facility also falls under PNGRB's technical safety regulations (typically pipeline and city-gas infrastructure), the same OISD standards are referenced there too, but that doesn't change who grants the underlying licence.
SMPV(U) Rules 2016
| Use case | Licence / approval | What it covers | Applicable lifecycle transactions |
|---|---|---|---|
| LPG bullets and fixed vessel storage | Form LS-1A | Static storage of compressed gas in a pressure vessel, including storage for cylinder filling. Head Office (Chief Controller) handles flammable, toxic and corrosive gases; Circle Office handles non-flammable, non-toxic and non-corrosive gases | Prior approval, grant, endorsement, renewal, amendment, transfer, penal action/surrender. NOC under rule 47 precedes it, except for storage of non-toxic, non-flammable compressed gas, which is exempted |
| LNG, LCNG and auto-fuel dispensing installations | Form LS-1B (Auto LPG dispensing) or Form LS-1C (LNG/LCNG dispensing) | Pressure vessel storage for dispensing as automotive fuel | Same transaction set as LS-1A |
| Bulk cryogenic and compressed gas in static vessels | Form LS-1A (cryogenic liquids, liquid carbon dioxide and non-flammable/non-toxic gases such as bulk nitrogen fall under this LS-1A category) | Static bulk storage of cryogenic liquid or compressed gas | Same transaction set as LS-1A |
| Transport of compressed gas in mobile pressure vessels | Form LS-2 (vehicle-mounted vessel), LS-2A (ISO tank container within India) or LS-2B (import of filled or empty ISO tank containers) | Mobile transport of compressed gas | Grant, endorsement, renewal, amendment, transfer, surrender. Rule 47 NOC does not apply to LS-2 |
Renewal for Form LS-1A through LS-1D, and for Form LS-2, runs for a maximum of 10 years (rule 51(1) and (2)), following the Static and Mobile Pressure Vessels (Unfired) (Amendment) Rules, 2025 (G.S.R. 374(E), dated 5 June 2025), which raised the previous 5-year maximum. The validity of Forms LS-2A and LS-2B is not stated here.
Worked example: bulk nitrogen. A bulk nitrogen storage tank is not automatically an SMPV(U) pressure vessel. It stays inside the Gas Cylinder Rules definition of a cylinder only up to 3,000 litres water capacity, and only if the diameter does not exceed 60 cm. That definition is not a licensing exemption. Above those conditions, the tank is a pressure vessel and the non-flammable, non-toxic LS-1A category applies, filed through NSWS to the appropriate PESO office. Once it is under SMPV(U), the Circle Office rather than Head Office handles non-flammable, non-toxic gas.
Design and type approval of the pressure vessel, vaporizer or fitting itself sits alongside the site licence, not inside it: a fabrication workshop needs PESO approval before it can fabricate, and each pressure vessel, vaporizer or fitting design then needs its own type/design approval, with a design appraisal certificate, fabrication and mounting drawings, and (for revalidation) a safety relief valve certificate under rule 18 and a certificate of control/hydro test certificate under rule 19.
Typical documents by licence type
Form LS-1A/LS-1B/LS-1C applications typically need: covering letter, the prescribed application, an undertaking of legal land possession, a rule 47 NOC where applicable, scale layout drawings, and (for revalidation) test and inspection reports from a PESO-recognised competent person or TPIA. Form LS-2/LS-2A applications need the vehicle or ISO tank container's fabrication and mounting drawings, hydro test certificate under rule 19, safety relief valve test certificate under rule 18, and (for imported vessels) the country-of-origin inspecting agency's initial and periodic inspection certificates.
Gas Cylinder Rules 2016
| Use case | Licence / approval | What it covers | Applicable lifecycle transactions |
|---|---|---|---|
| Filling and possession of gas cylinders | Form E&F (Chief Controller, for toxic, flammable-other-than-LPG and dissolved acetylene gases; Circle Office, for non-toxic, non-flammable gases) | Filling operations plus the associated storage shed | Prior approval, grant, endorsement, renewal, amendment, transfer, penal action. NOC under rule 48 precedes it, except that storage forming part of the filling plant gets a local-body NOC (Gram Panchayat or urban local body) instead of the District Authority |
| LPG cylinder storage and godowns above exempt quantity | Form F (storage only, no filling) | Storage-only premises for filled LPG cylinders, above the rule 44 own-use exemption | Grant, endorsement, renewal, amendment, transfer, penal action. LPG cylinder storage also gets the local-body NOC exception under rule 48, not the District Authority |
| Industrial cylinder storage | Form F (storage only, no filling) | Storage-only premises for industrial gas cylinders (oxygen, nitrogen, argon and similar) | Grant, endorsement, renewal, amendment, transfer, penal action. District Authority NOC under rule 48 applies: industrial storage isn't in the local-body-NOC exception |
Form D (import of cylinders, valves and LPG regulators) runs for a maximum of 1 year (rule 51(1)). Forms E, F and G (filling and storage) run to the 30th of September of the year up to which the licence is granted or renewed, subject to a maximum of 10 years (rule 51(2)).
A licence in Form E, F or G only takes effect from the date PESO endorses it after inspecting the premises (rule 50(4)): grant and endorsement are two separate steps here, unlike the Petroleum Rules' single-step grant.
Worked example: nitrogen cylinders. Nitrogen cylinders sit in the "industrial cylinder storage" row above alongside oxygen and argon, and everything on this page applies to them the same way it applies to any other non-flammable, non-toxic gas cylinder: Form F for storage, Form E&F if there is filling on site, manufacturer approval for the cylinders and valves themselves, and testing-station recognition for their periodic examination. None of the forms, approvals or offices on this page is specific to LPG.
Typical documents by licence type
Form E&F/F applications typically need: Form C (the application itself), a scale layout and specification plan, details of the surrounding area within 100 metres, proof of legal land possession, a process description, and (for flammable gas filling) verification of firefighting facilities against the Rules and relevant codes.
Cylinder, valve and regulator manufacturer approvals
Approval comes from the Chief Controller of Explosives, Nagpur, under Gas Cylinder Rules 2016 rules 3 and 4: initial approval for one year, then revalidation (rule 55) for a maximum of 10 years at a time. A foreign manufacturer's unit is also re-evaluated once every 5 years and needs a proven manufacturing track record of 10 years before approval.
Importer approvals
Form D under Gas Cylinder Rules 2016 rule 29 covers import of gas cylinders (empty and filled), valves and LPG regulators, granted by the Chief Controller of Explosives, Nagpur, for up to 1 year (rule 51(1)) and renewable. To import filled cylinders you need a Form F storage licence already in hand.
Cylinder testing station recognition
Recognition for periodic cylinder examination and testing, granted by the relevant PESO Circle office under Gas Cylinder Rules 2016 rule 35, initially for 1 year and extendable to a maximum of 10 years (rule 55) on production of a valid ISO accreditation certificate.
Recognition of competent persons and third-party inspection agencies
Competent persons and third-party inspection agencies (TPIA) are recognised by the Chief Controller of Explosives against the qualification and eligibility criteria set out in the relevant Schedule under each regime. Their certificates feed directly into the commissioning-stage test certificates described in "How a PESO approval moves" above.
Apply through the National Single Window System
PESO approvals under the regimes on this page, including new applications, renewals and amendments, are filed through the National Single Window System (NSWS), not PESO's own legacy portal: PESO directed all stakeholders to file through NSWS with effect from its notification dated 16 February 2022. An applicant adds the specific PESO approval to their NSWS dashboard under "Central Approvals," completes the approval-specific form, uploads the prescribed documents and fee, and tracks status from the same dashboard through to grant. An application sent directly to a PESO circle office instead of through NSWS will be delayed.
Explosives
Explosives are not licensed under the Petroleum Rules, the Gas Cylinder Rules or the SMPV(U) Rules. Manufacture, a magazine, possession for use, possession for sale, transport, and import or export are separate activities under the Explosives Rules, 2008.
PESO's official FAQ under those Rules states that construction of a factory or magazine must not begin before the required no-objection, and that an LE-3 magazine proposal generally needs prior approval. The same FAQ identifies Form AE-3 at the approval stage for LE-3, and a District Magistrate no-objection with an endorsed plan at grant, together with completion and lightning-protection records. Transfer is described under rule 108 and alteration or a capacity change under rule 109. Treat the FAQ as administrative guidance and match the form and authority to Schedule IV of the Rules before you file. The exact document set depends on the activity.
Ammonium nitrate
Ammonium nitrate is a further regime under the Ammonium Nitrate Rules, 2012. Manufacture or conversion, bagging, storage, sale or use, transport, and import or export are not one licence.
PESO's forms list maps applications A-1 to A-5 to those activity families. The licence that is issued is a P-series form. Application Form A-3 is not licence P-3. PESO's January 2025 procedure states that prior construction approval is required for P-1, P-2 and P-3 facilities, and that a manufacturing licence (P-1) normally also needs a DPIIT industrial licence. It distinguishes stores not exceeding 30 tonnes, stores exceeding 30 tonnes, and the agricultural-use class. Take the licensing authority from Schedule I for the activity you are actually carrying on. PESO states that most of these licences may be granted up to five financial years ending 31 March, and that import and export licences are valid for one year. Confirm that statement against the current rule and the licence conditions before you file.
Tamil Nadu interaction
PESO approvals are not Tamil Nadu approvals, but they run alongside several that are, and the two sets of clocks do not move together.
- Sequencing against state approvals. Layout and site approval under the relevant PESO regime needs to be in hand before construction begins, the same sequencing construction and building approvals requires for planning permission ahead of a building permit. The PESO licence itself needs to be in hand before commissioning, not obtained afterward. None of this runs on the same clock as TNPCB consent to establish or the TNFRS fire NOC and Fire Licence. Each runs independently, and waiting on one is no reason to delay filing the others.
- Renewal dates run independently. A PESO licence's renewal date has nothing to do with a factory licence's renewal date or a TNPCB consent's renewal date. Aligning them on a single compliance calendar is something you build yourself; the Rules don't do it for you.
- A pressure vessel inside a factory carries two sets of obligations, not one. A PESO licence does not by itself answer any separate examination the Tamil Nadu factory regime may require for the same vessel. Confirm that examination against the current Rules. The rule number is not stated here.
- A Tamil Nadu Single Window listing doesn't change what a PESO approval is. Where the Tamil Nadu Single Window Portal surfaces a PESO approval alongside state approvals in a combined checklist, it remains its own approval, with its own conditions, its own renewal cycle and its own licensing authority.
Common failure points
- Treating one PESO regime as another, and filing under the wrong one for what's actually being stored, filled or transported.
- Building the installation before layout approval is granted, then seeking a licence against a layout that doesn't conform to what's on the ground.
- Treating licence grant as permission to commission. Several forms still need an endorsement, an inspection, or a test certificate before the licence actually takes effect.
- Assuming TNPCB consent or a TNFRS fire approval covers PESO. They are separate approvals from separate authorities, and none substitutes for another.
- Assuming no licence is needed because the quantity looks small, without checking the exempt quantity for that specific petroleum class, gas, and regime.
- Missing that NSWS registration is the mandatory front door. Applying directly to a PESO circle office instead of through the National Single Window System stalls the application before it starts.
- Letting a transfer lapse on change of occupier, leaving the licence in a previous occupier's name while a different entity operates the facility.
Storing petroleum, gas or pressure vessels above the exempt quantity?
Send us what you store, fill or transport and the quantities involved. We'll tell you which PESO regime applies, which licence form, and which office to file with.