A PESO licence is the licence issued by the Petroleum and Explosives Safety Organisation (PESO) for storing, handling, transporting, manufacturing or selling petroleum, explosives or compressed gases. If you run a petrol pump, store petroleum or solvents above exempt quantities, fill or store gas cylinders, hold pressure vessels or deal in explosives or fireworks, you must check whether a PESO licence is needed before you start.
What is a PESO licence?
PESO is the central regulator for safety of explosives, petroleum products and compressed gases. It works under the Department for Promotion of Industry and Internal Trade, Ministry of Commerce and Industry. There is no single PESO licence. Each activity falls under a specific Act and Rules, and each has its own licence and form.
In practice, secondary guides group the main regimes like this. The Explosives Act, 1884 and the Explosives Rules, 2008 cover explosives such as detonators, fireworks and blasting agents. The Petroleum Act, 1934 and the Petroleum Rules, 2002 cover import, transport, storage and sale of petroleum products, including petrol pumps and bulk storage. The Gas Cylinders Rules, 2016 cover filling, storing and handling of compressed gas cylinders and CNG dispensing, and the Static and Mobile Pressure Vessels (Unfired) Rules, 2016 cover pressure vessels.
A PESO licence is granted for a specific activity at a specific location. Each facility needs its own application and an inspection, and a change in quantity, layout or operator usually needs prior approval or an amendment. The most important document is a to-scale site layout showing safety distances from boundary, roads, buildings and neighbouring structures, because safety distances are the core of the licensing decision.
Forms differ across the regimes. For example, secondary guides list Petroleum Rules forms such as Form XIV, XV and XVI for storage, and Form F and Form G under the Gas Cylinders Rules for filling or storing cylinders and CNG dispensing. Some applicants refer to application codes such as LP-1; confirm the exact form name and number in the PESO portal for your activity, since the portal's selection screen decides what you file.
Who needs a PESO licence?
You should check for a PESO licence if your activity involves any of the following:
- Petrol pumps, retail outlets, depots and bulk petroleum storage above exempt limits
- Storage of flammable liquids such as petrol, diesel, solvents, thinners or ethanol in quantities above the thresholds in the Petroleum Rules
- Transport of petroleum by tank truck or tank wagon
- Filling plants, storage of filled gas cylinders, LPG and industrial gas facilities such as oxygen, nitrogen, argon, acetylene and hydrogen
- CNG dispensing stations and LPG autogas dispensing
- Manufacturers, importers and dealers of gas cylinders, valves and related equipment
- Static and mobile pressure vessels for compressed gases
- Fireworks manufacturing, explosives storage, sale and transport, and blasting agents used in mining and construction
Benefits of PESO Licence
Lawful operation
Operating without a required licence is an offence and can lead to sealing, seizure and prosecution. A valid licence lets you run and expand without that risk.
Insurance and lender acceptance
Insurers, oil companies and banks usually insist on valid licences before covering or financing a petroleum or gas facility.
Safety discipline
The licensing process forces you to design storage with proper distances, electrical classification and firefighting, which lowers real accident risk.
Business eligibility
Dealerships, supply contracts and tenders in fuels, gases and chemicals often ask for the PESO licence as a basic eligibility condition.
Eligibility and applicability
Applicability depends on the substance, its class and quantity, and the activity. Key checks:
- Identify the substance and its class: petroleum is classified by flash point, and compressed gases and explosives have their own classifications under the respective rules
- Check quantity thresholds: small quantities may be exempt, but exemptions are narrow and depend on the class, container and storage place. Confirm with the Petroleum Rules or the PESO FAQ before deciding that a licence is not needed
- The applicant must have legal rights to the premises through ownership or a registered lease
- The site must satisfy the safety distances in the rules from the property boundary, other buildings, roads and public places
- Local approvals such as land use permission, a no-objection from the district authority and fire NOC are generally required before or during the PESO process
- Different activities need different licences, so a petrol pump with a cylinder filling or CNG facility may need more than one
Documents required
Applicant and premises documents
- Prescribed PESO application form for the Act and activity
- PAN, Aadhaar or incorporation certificate and GST registration of the applicant
- Ownership deed or registered lease of the premises and land use certificate
- Authority letter for the person signing the application
Technical documents
- To-scale site layout plan showing distances to boundary, roads and neighbouring structures, signed by a Chartered Engineer where required
- Tank, vessel or installation drawings, hazardous-area electrical layout and fire protection plan
- Tank calibration certificate for petroleum tanks and type approval for cylinders, valves and dispensers under the Gas Cylinders Rules, where applicable
- Details of quantities, class of material and handling process
NOCs and clearances
- Fire NOC from the fire service for the premises, where required
- NOC from the District Magistrate or the District Authority, which is commonly needed for petroleum, explosives and pressure vessel licences
- Police clearance and security plan for explosives
- Fee payment proof from the portal
Step-by-step PESO licensing process
The sequence below reflects the common process on the PESO portal as described in secondary guides. Your regional office and the specific Rules may add steps.
Identify the Act, licence type and quantity
Map your activity to the Explosives Rules, Petroleum Rules, Gas Cylinders Rules or SMPV(U) Rules, and to the exact licence category and capacity.
Plan the site and prepare drawings
Prepare the site layout and drawings with the correct safety distances. Most rejections come from layouts that do not meet the distances or do not match the actual site.
Obtain NOCs
Apply for fire NOC and the district authority NOC where required. Start these early because they are outside PESO's control.
Register on the PESO portal and select the form
Create the account, choose the correct Act and form, and fill the application accurately.
Upload documents and pay the fee
Upload drawings and papers in the formats asked and pay the fee through the portal's payment gateway.
Scrutiny and queries
PESO scrutinises the file and may raise queries. Secondary guides mention responding within 15 to 30 days, so reply fully and on time.
Site inspection
A PESO officer inspects the installation against the approved drawings and safety requirements. Keep the site ready, with the equipment, signage and fire protection in place.
Licence issue and renewal planning
After observations are complied with, the licence is issued digitally. Note the expiry date and the last date to file renewal.
Government fees
Licence fees are prescribed in the respective Rules and are paid online on the PESO portal. They depend on the Act, licence category, quantity or capacity and the period of the licence. We have not quoted figures because they differ by category and could not be confirmed from the official fee schedule for this page. Check the fee schedule on peso.gov.in for your category before applying.
Professional charges are quoted separately after reviewing your case. Government fees are paid directly to the authority.
How long does it take?
There is no single timeline. It depends on the licence category, the completeness of drawings, how quickly the fire and district NOCs come through, and the date of inspection. Secondary guides mention query response windows of about 15 to 30 days. Applications with correct safety distances and complete NOCs move faster than those that need repeated resubmission.
Validity and renewal
Validity varies by Act and category. Secondary guides report that petrol pump licences typically run for about three years, SMPV(U) licences for a maximum of three years ending on 31 March, and other categories for one to five years. Always rely on the expiry printed on your licence. File renewal before expiry, since an expired licence means the activity is unlicensed. For SMPV(U) licences, a guide mentions that renewal applications should reach the office by a fixed date before expiry, so ask for the cut-off in your case. Changes in quantity, layout or tanks need prior approval or an amendment.
Compliance after approval
- Operate only the approved activity, quantity and layout, and amend the licence before any change
- Display licence copies and safety signage, and keep fire fighting equipment tested and in working order
- Keep tank, cylinder and vessel testing certificates valid, including periodic testing where the rules require
- Maintain stock registers and records of receipts, issues and transport as the rules require
- Train staff in safe handling and emergency response, and keep emergency contacts displayed
- Report accidents and incidents to the authorities within the time limits in the Rules
- Renew the licence before expiry and keep supporting NOCs such as fire NOC valid
Which PESO regime applies to which activity?
| Activity | Act and Rules | Examples |
|---|---|---|
| Petroleum storage, transport, sale | Petroleum Act, 1934 and Petroleum Rules, 2002 | Petrol pump, depot, solvent storage above limits |
| Compressed gas cylinders and CNG | Gas Cylinders Rules, 2016 | Cylinder filling, storage, CNG dispensing |
| Pressure vessels | SMPV (Unfired) Rules, 2016 | Static or mobile vessels for compressed gases |
| Explosives and fireworks | Explosives Act, 1884 and Explosives Rules, 2008 | Detonators, fireworks, blasting agents |
Common mistakes and rejection reasons
Site layout without correct distances
Guides identify the layout drawing as the most common cause of rejection. Drawings must be to scale and show real distances, not approximate ones.
Choosing the wrong Act or form
A cylinder filling facility, a CNG station and a petroleum depot sit under different Rules. Selecting the wrong form wastes fees and time.
Applying before the NOCs are in motion
District and fire NOCs take their own time. Starting them late is the usual cause of long delays.
Mismatch between application and site
If the inspector finds a layout, quantity or equipment that differs from the approved drawing, the licence is held back.
Letting the licence lapse
An expired licence means the activity is unlicensed and a long lapse can require a fresh licence.
Penalties for non-compliance
Contravention of the Petroleum Act, the Explosives Act and the Rules made under them can attract imprisonment, fines, seizure and sealing, and licences can be suspended or cancelled. The punishments differ by Act and by the gravity of the offence, and the statutes have been amended. We have not listed amounts here because they were not verified against the current text of the Acts.
Practitioner tips
- Get the layout drawn or vetted by a competent engineer before you sign a lease or finalise land. A plot that cannot meet safety distances cannot be saved by paperwork.
- Call the district office and fire department early to ask exactly what their NOC format and checklist are. District practice varies and a first-time rejection costs weeks.
- If your facility has more than one regulated activity, such as a petrol pump with CNG dispensing or a gas plant with pressure vessels, sequence the licences and keep drawings consistent across them.
- Set up a calendar for the licence expiry, testing certificates and fire NOC. In our experience, lapses of ancillary certificates cause as many problems as the main licence.
How Lawgical Guru helps
Licence category and Act mapping
We help identify which Act, Rules and form apply to your substance, quantity and activity.
Document and NOC coordination
We prepare the documentation checklist and coordinate the district and fire NOC applications along with the PESO file.
Portal filing and query replies
We register on the portal, file the application, pay the fees on your behalf as per your instructions and draft replies to queries.
Renewal tracking
We set up reminders for renewal and for related certificates, so you do not operate on an expired licence.
Related approvals
We also assist with fire NOC, pollution NOC, factory licence and building plan approval for the same site.
PESO Licence: frequently asked questions
What is a PESO licence?
It is a licence issued by the Petroleum and Explosives Safety Organisation for storing, handling, transporting or selling petroleum products, explosives or compressed gases. The exact licence depends on the Act: Petroleum Rules, Explosives Rules, Gas Cylinders Rules or SMPV(U) Rules.
Who needs a PESO licence?
Petrol pumps, petroleum depots, solvent storage above exempt quantities, gas cylinder filling and storage units, CNG stations, pressure vessel owners, and explosives and fireworks businesses. Small quantities may be exempt, but exemptions are narrow, so check the rules for your product.
Which Acts govern PESO licences?
The Explosives Act, 1884 with Explosives Rules, 2008; the Petroleum Act, 1934 with Petroleum Rules, 2002; the Gas Cylinders Rules, 2016; and the Static and Mobile Pressure Vessels (Unfired) Rules, 2016. Each has separate licence types and forms.
How do I apply for a PESO licence?
Applications are generally made online on the PESO portal at peso.gov.in. You register, select the correct Act and form, upload documents and drawings, pay the fee, respond to queries and face a site inspection. Some categories may still need physical submission, so check the portal.
What documents are needed for a PESO licence?
Application form, entity and PAN or GST documents, ownership or registered lease deed, a scaled site layout plan, drawings and certificates for tanks or vessels, fire NOC, district authority NOC where required and fee proof. Explosives need police clearance and a security plan.
How long is a PESO licence valid?
It varies by Act and category. Secondary guides report about three years for petrol pumps and a maximum of three years for pressure vessel licences, with other categories between one and five years. The expiry date is printed on your licence, so renew before then.
Is a fire NOC required for a PESO licence?
For most petroleum and gas installations, a fire NOC and a district authority NOC are part of the documents, though requirements vary by rule and state. Start these approvals early, since they are issued by other authorities and can take time. See our fire NOC page for that process.
What is the most common reason for PESO rejection?
Secondary guides point to the site layout. If safety distances from the boundary, roads and neighbouring buildings are not shown correctly or do not meet the Rules, the application is returned. Accurate, to-scale drawings signed by a competent engineer help avoid this.
Do I need a PESO licence for diesel storage for my DG set?
It depends on the quantity, the class of the fuel and the storage arrangement. The Petroleum Rules exempt small quantities, but beyond the limits a licence is needed. Check the quantity limits and the PESO FAQ or ask the regional office before deciding.
Reviewed by Satyam Gupta, Company Secretary (CS) & Advocate
8+ years of industry experience. This page was last reviewed on 16 October 2026 against the official sources below. Rules and fees change — confirm on the official portal before you apply.