The Petroleum Rules, 2002 (notified via G.S.R. 204(E) on 13 March 2002) are India's central framework governing the import, storage, transport, and handling of petroleum. Made under the Petroleum Act, 1934, they mandate licences, approved containers, safety distances, and oversight by the Chief Controller of Explosives under PESO (the Petroleum and Explosives Safety Organisation).
The Rules operationalise the Petroleum Act, 1934, and apply to anyone storing, importing, or moving petroleum — from petrol pump owners to bulk installation operators and tank-truck transporters.
Key Administrative Terms
Tank: Receptacle > 1,000 litres.
In this guide
How is petroleum classified under the Rules?
Petroleum is regulated in three classes by flash point. Use the filter to narrow the chart:
| Class | Flash point | Examples |
|---|---|---|
| Class A | < 23 °C | Petrol (Motor Spirit), Naphtha, Acetone, Benzene, Toluene, Methanol, Ethanol, MEK, Hexane |
| Class B | ≥ 23 °C and < 65 °C | Kerosene (SKO), Diesel (HSD), Mineral Turpentine Oil, Aniline, Styrene, Butanol, Carbon Disulfide |
| Class C | ≥ 65 °C and < 93 °C | Furnace Oil, Light Diesel Oil (LDO), Transformer Oil, Hydraulic Oil, Brake Oil, Gear Oil |
What quantities are exempt from licensing?
Below these limits, storage is licence-free. Select a class and enter your quantity to check instantly:
Which PESO licence form do I need?
These are the forms most facilities deal with on the ground:
| Form | Use case | Fee |
|---|---|---|
| Form IX | Application to import and store petroleum (standard entry-point) | — |
| Form XV | Import & store in a bulk installation (principal licence) | ₹1,000 / first 50 KL + ₹15 per additional KL, capped ₹15,000/year per class |
| Form XVI | Import & store otherwise than in bulk above class thresholds | As Form XV |
| Form XIV | Petrol pump (tank + pump outfit for fuelling motor conveyances) | As Form XV |
| Form XI | Carry petroleum by land on mechanically propelled vehicles | ₹500 / calendar year |
| Form XII | Import & store Class A ≤ 300 L (District Authority) | ₹200 / calendar year |
| Form III | Carry petroleum in bulk by water (valid 1 year) | ₹5,000 up to 100 t gross + ₹1,000 per additional 50 t |
Applications are filed online via the National Single Window System (NSWS).
What are the key compliance requirements?
Importation
Petroleum may be imported only under licence unless covered by section 7/8/9 exemptions. Import by sea is restricted to approved Customs ports with OISD Standard-156 fire-fighting facilities. Ships' masters/agents file a Form I declaration; importers furnish a Form II storage-accommodation certificate. Specifications must map all protected works within 500 metres of unloading facilities.
Transport
No leaky receptacles; containers loaded bung upwards; no smoking or lights. Loading/unloading is restricted between sunset and sunrise unless adequate lighting and fire-fighting are provided. Class A transport by country craft is prohibited (Rule 40). Bulk road transport uses tank vehicles (tank > 1,000 L).
Storage requiring licence
No storage without a licence, save the Rule 116 exemptions. Facilities must maintain fire precautions (DCP extinguishers per OISD-117), trained supervision, cleanliness, drainage of tank enclosures, and the safety distances in Tables 1, 2 and 3 (Tables 1 and 2 where Class A/B is involved; Table 3 where only Class C is stored).
How Dev Associates helps
End-to-end handling, so you deal with one point of contact instead of navigating PESO yourself:
Application drafting
Complete preparation of Form IX, XV, and XVI.
Layout drawings
Site plans prepared to exact PESO norms.
Safety-distance compliance
Specifications meeting Tables 1, 2 and 3.
Document review
Full file vetting before submission.
PESO / CCE liaison
Direct follow-up with the Chief Controller's office.
Renewals & NSWS filing
Online filing and validity tracking.
Why Dev Associates
End-to-end PESO handling
From document review and Form IX/XV/XVI drafting to CCE liaison and final follow-up — the entire licensing journey under one roof.
PESO-compliant layout drawings in-house
Most rejections fail on specifications and safety distances. We prepare site plans to exact PESO norms, cutting resubmission delays.
Complete file vetting before submission
Every document is checked for compliance before it reaches PESO, catching gaps early. 98% first-time approval rate
Renewals managed for you
Licences run 1–10 years and lapse if missed. We track validity and handle NSWS filing so yours never expires unnoticed.
Trusted by industrial clients across India
Pan-India PESO licensing support for petrol pumps, installations, and chemical facilities. 20+ years in operation and 500+ licences secured
Frequently Asked Questions
Anyone storing, importing, or transporting petroleum above the exempted limits — petrol pump operators (Form XIV), bulk installation owners (Form XV), importers (Form IX/XVI), and tank-vehicle transporters (Form XI/XIX). No licence is needed for well-head tanks, port transit cargo, or quantities exempted under sections 7, 8 and 9 of the Petroleum Act, 1934.
Class A: up to 30 litres. Class B: up to 2,500 litres. Class C: up to 45,000 litres — though PESO permission is generally still advised for Class C even below the threshold.
An installation is premises specially prepared for storing petroleum in bulk in tanks, licensed under Form XV. A storage shed stores petroleum in containers or drums, licensed under Form XVI. The distinction determines which licence form and safety-distance table apply.
It varies by form: the Chief Controller (or authorised Controller) grants installation licences (Form XV); the Controller grants most transport and storage licences; the District Authority grants small-quantity licences (Forms XII, XIII); and a Central Government-appointed officer grants water-carriage licences (Form III).
Installations must observe safety distances per Tables 1, 2 and 3 (Tables 1 and 2 where Class A or B is stored; Table 3 for Class C only). Dry chemical powder extinguishers are mandatory, scaled to OISD Standard-117; ports require fire-fighting per OISD Standard-156. Plans must show all protected works within 500 metres of unloading facilities.
Most bulk and non-bulk storage licences are valid from 1 year up to a maximum of 10 years from the date of issue, as granted by PESO.
Need a Petroleum Rules 2002 Licence?
Dev Associates handles the full PESO application — drafting, layout drawings, safety-distance compliance, and CCE liaison.
Related guides in this series
Sources: PESO — Petroleum Rules 2002 · Full rules (PDF, PESO).
Disclaimer: This guide is educational and does not replace professional advice or the official text.