Licences Required to Open a Petrol Pump or Gas Outlet in India

Licences and registrations to plan for

• Planning stage
  Udyam registration

  Optional for a retail dealer, but useful for bank finance and government scheme eligibility if your entity qualifies.

• Before construction
  Building plan and layout approval

  The forecourt, canopy, tank location and any shop must be approved by the local authority, and the PESO drawings must match what is built.

• Before borewell use
  Groundwater NOC

  Only needed if you plan to draw water by borewell for the washing or service bay. Many urban sites rely on a municipal connection instead.

• Before construction and operation
  Pollution consent (CTE / CTO)

  State boards generally classify fuel stations under their own category lists. Confirm the category and consent requirement with your board before construction.

• Before commissioning
  Fire NOC

  Fuel stations store large volumes of flammable liquid, and the state fire service examines extinguishers, spacing and safety systems before issuing clearance.

• Before storing fuel
  PESO licence for petroleum storage

  Storing petroleum above the exempt quantity requires a licence under the Petroleum Rules, 2002, granted after drawings, NOCs and a site inspection. Gas cylinders and pressure vessels fall under their own rules.

• Before first sale and periodically
  Legal metrology verification of dispensers

  Fuel dispensers are measuring instruments. They are expected to be verified and stamped under the Legal Metrology Act, 2009 and re-verified at intervals set by state rules.

• Before operation
  Hazardous waste authorisation

  Used oil, tank-bottom sludge and oil-contaminated material are commonly handled under hazardous waste rules, so check whether your board expects authorisation.

• Before taxable sales
  GST registration

  Petrol and diesel sit outside GST at present, but non-fuel sales such as lubricants, a convenience store, services and some inputs are taxable. Confirm the position for your mix.

• On starting operations
  Shops and establishments registration

  Pump staff and any attached store may bring the outlet within the state labour department's establishment rules.

• Before opening
  Local trade licence

  Municipal bodies often license commercial premises, including fuel retail. The need and fee depend on the body.

• On hiring
  EPF and ESIC

  Pump attendants, managers and drivers count as employees, so check coverage thresholds as the team grows.

Two tracks: the oil company and the regulator

A retail outlet normally runs under a dealership with an oil marketing company such as IOCL, BPCL or HPCL, which advertises locations, selects dealers through its own criteria and enters into a dealership agreement. Land, a deposit and minimum infrastructure are involved, and the exact eligibility, fees and investment are set by each company in its advertisement. We have not verified current amounts, so use the company's own notice for them.

In parallel, the site must satisfy the statutory approvals. Oil companies usually require the dealer to arrange the approvals or help with them, but responsibility for compliance stays with the licensee. A business that bypasses a company and tries to retail fuel independently faces separate and strict restrictions that this page does not cover.

The roadmap: order of approvals

A new outlet normally moves in the sequence below. Gas outlets follow the same logic with different forms.

• Secure the land with clear title or a registered lease and check that its location satisfies the oil company's site criteria, including road frontage and distance from junctions, schools and similar places.
• Obtain the access or road-side permission from the road-owning authority, such as the highway authority or the local public works department, as the company requires.
• Get the building plan or layout approval from the local planning authority and, where the state requires, a land use or change of land use permission.
• Apply for pollution Consent to Establish and, if needed, groundwater permission before construction starts.
• Prepare PESO drawings for tanks, dispensers and pipework, and apply for the storage licence through the PESO online portal with the NOCs the Rules require.
• Build to the approved drawings, then obtain fire NOC, Consent to Operate and the final PESO licence after inspection.
• Get the dispensers verified and stamped by the Legal Metrology department before sales begin.
• Register for GST and labour laws, and display licences and the required notices on site.

PESO: what the licence covers

PESO administers the Explosives Act, 1884, the Petroleum Act, 1934 and Petroleum Rules, 2002, and the Gas Cylinders Rules, 2016, among others. A retail outlet applies for a petroleum storage licence, and an LPG or autogas facility needs the licence suited to cylinders or pressure vessels. The application is filed online and processed through PESO's regional offices, with query rounds on drawings and NOCs.

We could not open PESO's own pages when preparing this guidance, so licence validity, form numbers and fees come from secondary sources and are not given here. Check the forms and fee schedule on the PESO portal before filing. As a rule of thumb, apply for a renewal well before expiry because operating on an expired licence is an offence.

CNG, LPG and other gas outlets

LPG distributorships are also allotted by oil marketing companies through advertisements, and the godown and cylinder handling are licensed by PESO. Compressed natural gas stations are part of city gas distribution networks, which operate under authorisations from the Petroleum and Natural Gas Regulatory Board and the local gas distribution company. If you want a CNG dispensing facility, begin with the city gas company or oil company that holds the area authorisation, and confirm the statutory approvals with them.

Delhi, Uttar Pradesh and Haryana: where applications go

Delhi: Building and land use approvals go to the MCD, NDMC or DDA depending on the plot. Fire clearance comes from the Delhi Fire Service, pollution consent from DPCC and dispenser verification from the Legal Metrology department. Space is scarce, so most Delhi sites are already allotted.

Uttar Pradesh: Approvals come from the relevant development authority or nagar nigam, the UP Fire and Emergency Services, UPPCB and the state Legal Metrology department. Industrial and authority-area projects often use the Nivesh Mitra portal for coordination.

Haryana: Planning approvals come from the town and country planning department or the local urban body, fire clearance from the Haryana Fire and Emergency Services, and pollution consent from HSPCB. Highway-facing sites also need road-owner permission.

Local rules on distances and road access differ, so ask the oil company's territory office for the current site checklist.

Recurring compliance for a running outlet

• PESO licence renewal on the date stated on the licence, and prior approval for any change in tanks, dispensers or layout.
• Periodic re-verification and stamping of dispensers by Legal Metrology, with stamps and seals intact.
• Fire safety: serviceable extinguishers, staff training, drills and fire NOC renewal as your state requires.
• Pollution board: renewal of consent, hazardous waste records and any returns the board prescribes.
• Stock and density records, tank calibration and leak testing as required by the licence conditions.
• Taxes and labour: GST on taxable items, TDS, PF, ESIC and shop establishment returns.

Pitfalls that delay fuel station approvals

• Buying or leasing land before the oil company confirms it meets its site and frontage criteria.
• Drawings that do not match the plot, so PESO queries and local authority sanction diverge.
• Building before getting the pollution and planning approvals, then paying for rectification.
• Letting the licence lapse. Operating without a valid licence is an offence under the petroleum laws.
• Ignoring dispenser verification. Seized or unsealed dispensers stop sales and invite action.

Frequently asked questions

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