PESO License

What is a PESO License?

A PESO (Petroleum and Explosives Safety Organization) License is a statutory approval issued by the Government of India for the manufacture, storage, transportation, handling, import, export, and use of petroleum products, compressed gases, explosives, pressure vessels, and other hazardous substances. The primary objective of the license is to ensure industrial safety, protect human life and property, and promote safe handling practices in accordance with applicable safety regulations.

PESO regulates industries dealing with diesel, petrol, LPG, LNG, CNG, industrial gases, solvents, chemicals, cryogenic liquids, explosives, pressure vessels, and hazardous materials. Industries handling these substances must obtain the appropriate PESO approval before installation, storage, commissioning, or operation of the facility.

Why is a PESO License Required?

A PESO License is required to ensure that hazardous materials are stored, transported, and handled safely while complying with national safety regulations. It helps industries minimize operational risks, prevent fire and explosion hazards, and establish safe working environments.

Obtaining a PESO License also demonstrates legal compliance, facilitates smooth project approvals, supports insurance requirements, and enhances the credibility of industrial operations. Failure to obtain the necessary PESO approval may result in regulatory action, operational restrictions, penalties, or project delays.

Who Needs a PESO License?

Any organization involved in the storage, handling, transportation, manufacturing, or utilization of petroleum products, gases, explosives, or hazardous chemicals may require a PESO License depending on the applicable rules and storage capacity.

When is a PESO License Required?

A PESO License is generally required when an industry stores, handles, transports, or uses petroleum products, flammable liquids, compressed gases, LPG, LNG, CNG, solvents, or other hazardous substances beyond the exemption limits specified under the applicable PESO rules.

For petroleum products, the requirement primarily depends on the flash point classification (Class A, B, or C) and the quantity stored. If the storage quantity exceeds the prescribed exemption limit, obtaining a PESO License becomes mandatory before installation or operation.

Storage Quantity Guidelines for Petroleum Products

Petroleum Class	Flash Point	Examples	General Exemption Limit*	PESO License Required
Class A	Below 23°C	Petrol, Benzene, Acetone, Toluene, Hexane, Naphtha, Thinner	Up to 30 Litres	More than 30 Litres
Class B	23°C to below 65°C	Kerosene, Mineral Turpentine, Some Solvents	Up to 2,500 Litres (subject to rule conditions)	More than 2,500 Litres
Class C	65°C to below 93°C	Diesel (HSD), Furnace Oil, LDO	Up to 45,000 Litres under specified non-licensed storage provisions	Storage beyond the applicable exemption or where licensing conditions apply

Note: The above limits are simplified guidance for website visitors. Actual licensing requirements depend on the Petroleum Rules, 2002, the type of petroleum product, bulk or non-bulk storage, intended use (sale or captive consumption), storage method, and site conditions. A technical applicability assessment should be carried out before determining whether a PESO License is mandatory.

How to Obtain a PESO License?

Obtaining a PESO License involves technical planning, engineering review, statutory documentation, online application submission, authority scrutiny, site inspection, and final approval. A professionally prepared application significantly improves approval timelines and minimizes compliance risks.

Step 1 – Applicability Assessment

Our experts evaluate your industrial activities, storage capacity, hazardous substances, and applicable regulations to determine the specific PESO approval required.

Step 2 – Engineering Drawings & Technical Documentation

Preparation of statutory layout drawings, tank drawings, vessel details, Piping & Instrumentation Diagrams (P&ID), safety layouts, equipment specifications, and engineering documents as required by PESO.

Step 3 – Documentation & Online Application

Preparation and submission of all required statutory documents through the PESO online portal, including company information, technical specifications, safety documents, and supporting approvals.

Step 4 – Authority Review & Site Inspection

PESO officials review the submitted application and conduct technical inspections to verify compliance with applicable safety standards, engineering requirements, and statutory provisions.

Step 5 – License Approval

Upon successful verification and compliance, the PESO License is granted, authorizing the industry to safely install, store, transport, or operate regulated petroleum products, gases, pressure vessels, or hazardous materials.

Why Choose Environ Project & Consultancy Pvt. Ltd.?

Environ Project & Consultancy Pvt. Ltd. is a trusted industrial compliance consultancy with extensive experience in regulatory approvals, environmental compliance, and industrial safety. We provide complete end-to-end support for PESO licensing, from technical assessment to final approval.

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