What are the Petroleum Rules 2002?

The Petroleum Rules, 2002 (G.S.R. 204(E) of 13 March 2002) are the Central Government's rules under the Petroleum Act, 1934 for importing, transporting, storing, refining and testing petroleum. PESO and the District Authority license under them; they were last amended on 4 March 2024 by G.S.R. 154(E).

How much diesel can I store without a licence?

If the diesel is Class B, up to 2,500 litres at one place, provided no receptacle holds more than 1,000 litres (section 7 of the Petroleum Act). A single tank over 1,000 litres needs a Form XV licence whatever it holds. Fuel in a generator's own attached tank is exempt under section 9.

Is diesel Class B or Class C petroleum?

It depends on the flash point on the fuel's certificate. Class B runs from 23 °C to below 65 °C; BPCL's data sheet gives normal HSD a flash point above 35 °C and high-flash HSD above 66 °C, which would be Class C with its 45,000 litre exemption.

What is the difference between Form XV and Form XVI?

Form XV licenses an installation, where petroleum is stored in bulk in tanks over 1,000 litres. Form XVI licenses a storage shed for petroleum in drums and cans above the District Authority's limits: Class A over 300 litres, Class B over 25,000 litres or Class C over 45,000 litres. Both come from PESO circle offices.

Which petroleum licences does the District Authority issue?

Form XII for Class A up to 300 litres and Form XIII for Class B up to 25,000 litres not in bulk, plus the rule 144 NOC for PESO licences. The District Authority is the District Magistrate, or the Commissioner or a Deputy Commissioner of Police in a commissionerate town.

Which licences need a rule 144 NOC?

Every new licence granted by the Chief Controller or a Controller except Forms III, XI, XVII, XVIII and XIX, so storage on Forms XIV, XV, XVI and the Special Form. No NOC is needed inside a notified port, state airport, ISRO or atomic energy area, where that authority's consent replaces it.

What is the penalty for storing petroleum without a licence?

Up to 1 month's simple imprisonment, a fine of up to Rs 1,000, or both under section 23 of the Petroleum Act; a repeat offence carries up to 3 months or Rs 5,000. The Magistrate may also confiscate the whole stock. The Jan Vishwas Acts of 2023 and 2026 did not change these amounts.

Where can I download the Petroleum Rules 2002 PDF?

PESO hosts the 2002 text with all forms at peso.gov.in, and the 2024 amendment (G.S.R. 154(E)) as a separate Gazette PDF; MoPNG hosts the 2011 amendment. PESO's copy is not consolidated for every amendment, so read it with the Gazette notifications listed on this page.

Codes and laws 31 min read

Petroleum Rules 2002: classes, licence limits, forms, the rule 144 NOC and amendments

Updated October 2026By Flamekite Editorial DeskFacts checked against official sources on 25 October 2026

Quick answer

Petroleum Rules 2002 class fuel by flash point. Diesel up to 2,500 litres needs no licence if no receptacle exceeds 1,000 litres; above that, a licence. Class A, such as petrol, flashes below 23 °C, Class B from 23 °C to below 65 °C, Class C from 65 °C to below 93 °C, and the Petroleum Act, 1934 sets a licence-free quantity for each.

The District Authority licenses small drum stores: Class A to 300 litres on Form XII and Class B to 25,000 litres on Form XIII. Everything larger, and every tank over 1,000 litres, is licensed by PESO on Forms XV or XVI after a rule 144 NOC. The Rules were last amended on 4 March 2024, and neither Jan Vishwas Act changed the Act's Rs 1,000 and Rs 5,000 fines.

Diesel without a licence: 2,500 litres; Class B, no receptacle over 1,000 litres (s.7); Classes and limits
District Authority licence, Class B: 25,000 litres; Form XIII, drums and cans only; Who licenses
Class A shed over 1,00,000 litres: 15 m; Clear to protected works (Form XVI); Distance table
First offence under section 23: Rs 1,000; Or 1 month; Rs 5,000 or 3 months on repeat; Penalties

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Petroleum Rules 2002 at a glance: 12 facts

The instrument, its parent Act, its amendments and its main lines, each with the text it comes from. Last verified 25 October 2026.
What	The rule	Source
Instrument	Petroleum Rules, 2002, G.S.R. 204(E) of 13 March 2002, Ministry of Petroleum and Natural Gas; in force on publication; repealed the Petroleum Rules, 1976 (rule 202)	Petroleum Rules 2002
Parent Act	Petroleum Act, 1934 (Act 30 of 1934), made under sections 4, 5, 14, 21, 22 and 29(1); the Act came into force on 30 March 1937	Petroleum Act (PESO)
Amendments in force	G.S.R. 857(E) of 1 December 2011, G.S.R. 762(E) of 10 August 2018, G.S.R. 384(E) of 29 May 2019, G.S.R. 196(E) of 17 March 2021 and G.S.R. 154(E) of 4 March 2024	G.S.R. 196(E), 2021
Regulator	PESO under DPIIT: the Chief Controller of Explosives at Nagpur and the circle and sub-circle Controllers	PESO SOP
Classes	Class A below 23 °C; Class B 23 °C to below 65 °C; Class C 65 °C to below 93 °C; at 93 °C and above, Chapter I of the Act does not apply (s.11)	Petroleum Act 1934
No licence up to	Class A 30 litres not for sale; Class B 2,500 litres with no receptacle over 1,000 litres; Class C 45,000 litres	Petroleum Act 1934
District Authority licences	Form XII for Class A up to 300 litres; Form XIII for Class B not in bulk up to 25,000 litres	PESO SOP
PESO licences	Form XV installations, Form XVI larger drum stores, Form XIV fuel stations, Form XI road tankers, Form XIX refuellers, Special Form	PESO SOP
District NOC	Rule 144: every new licence PESO grants, except Forms III, XI, XVII, XVIII and XIX, needs the District Authority's NOC	Petroleum Rules 2002
Validity	To 31 December of the final year, at most 3 years (rule 142); Forms III and XVII at most 1 year	Petroleum Rules 2002
Fire fighting base rule	Rule 117(4): oil-fire extinguishers in every storage shed and small Class B or C installation; OISD-STD-244 for new installations since 2024	G.S.R. 154(E), 2024
Penalty	Section 23: up to 1 month or Rs 1,000 or both; a repeat up to 3 months or Rs 5,000 or both; unchanged by the Jan Vishwas Acts of 2023 and 2026	Jan Vishwas Act 2026

Storage shed distances under Form XVI by class and quantity

Distance to keep clear at all times between a Form XVI storage shed and any protected work, by the shed's total licensed capacity (condition 7). Where classes are stored together, the whole quantity counts as the most flammable class; the licensing authority may reduce a distance where screen walls or other special precautions are provided (condition 8). Read from PESO's text and its page images on 25 October 2026.
Option	Class A	Class B	Class C	Source
Up to 2,500 litres	6 m	Not applicable	Not applicable	Petroleum Rules 2002
Over 2,500 to 25,000 litres	7.5 m	Not applicable	Not applicable	Petroleum Rules 2002
Over 25,000 to 50,000 litres	9 m	3 m	Not applicable	Petroleum Rules 2002
Over 50,000 to 1,00,000 litres	12 m	4.5 m	3 m	Petroleum Rules 2002
Over 1,00,000 litres	15 m	6 m	3 m	Petroleum Rules 2002

Licensing a diesel tank or drum store under the Petroleum Rules in 8 steps

Fix the class and the quantity
Read the flash point on the fuel's data sheet, add up everything held at one place and note the largest receptacle: over 1,000 litres is bulk storage.
Pick the licence
Form XII or XIII from the District Authority for small drum stores; Form XVI from PESO for larger ones; Form XV for any tank; a prior report for Class C over 5,000 litres.
File for prior approval
Register on the National Single Window System and file Form IX with scaled drawings of protected works within 100 m, the product's data sheet, the supplier's letter of intent, land papers and the Rs 2,000 scrutiny fee.
Take the rule 144 NOC
Apply to the District Authority with two copies of the site plan through the LSDA module; the endorsed NOC goes to PESO with the grant application.
Build to the approved plan
Enclosure wall or sump, a 1.8 m wall or fence round the protected area, approved Ex electrical apparatus and the fire-fighting facilities shown on the drawing.
Test and certify
A competent person or TPIA water-tests each tank (rule 126) and signs the certificate of safety before petroleum is first stored (rule 130); tank earthing is tested every 12 months.
Get the licence
Upload the NOC, a drawing matching the approved one and colour photographs from all sides; the licence runs to 31 December, for at most 3 years.
Renew and alter only with approval
Renew with the fee and a compliance report on any recent PESO inspection; any change to the premises needs a drawing approved first (rule 146), then an amendment (rule 147).

Petroleum class A, B and C: flash points and licence-free quantities

The class decides how much may be kept without a licence and who licenses the rest. The quantities are in sections 7, 8 and 11 of the Act; the licensing authorities in PESO's SOP.

	Flash point	No licence needed up to	District Authority licence	PESO licence above that
Class A PESO SOP	Below 23 °C	30 litres not for sale, in stoppered receptacles of at most 1 litre (glass) or 25 litres (metal)	Form XII, up to 300 litres	Form XVI over 300 litres not in bulk; Form XV in tanks
Class B PESO SOP	23 °C to below 65 °C	2,500 litres at one place, with no receptacle over 1,000 litres	Form XIII, over 2,500 to 25,000 litres not in bulk	Form XVI over 25,000 litres not in bulk; Form XV in any tank over 1,000 litres
Class C PESO SOP	65 °C to below 93 °C	45,000 litres, kept under rules 136 to 140	None	Form XVI over 45,000 litres not in bulk; Form XV in tanks
Flash point 93 °C or above Petroleum Act 1934	93 °C and above	Any quantity: Chapter I of the Act does not apply (s.11)	None	None

Bulk means a tank or receptacle of more than 1,000 litres; a container holds 1,000 litres or less (rule 2). PESO's 2024 FAQs put the District Authority's range as Class A above 30 to 300 litres and Class B above 2,500 to 25,000 litres. Fuel in a vehicle's or a stationary engine's own tank is covered by section 9, below.

Diesel for a DG set: the section 9 stationary engine exemption

Section 9 is the line every generator owner needs. It frees the fuel in the engine's own tank, and up to 100 litres of Class A for motive power, from licensing.

Word for word

The owner of a motor conveyance, who complies with the requirements of the law for the time being in force relating to the registration and licensing of such conveyance and its driver or pilot and the owner of any stationary internal combustion engine, shall not be required to obtain a licence (a) for the import, transport or storage of any petroleum contained in any fuel tank incorporated in the conveyance or attached to the internal combustion engine, or (b) for the transport or storage of petroleum Class A, not exceeding one hundred litres in quantity in addition to any quantity possessed under cl. (a).

Petroleum Act, 1934, section 9(1), as printed in PESO's annotated copy of the Act Petroleum Act (PESO)

The 100 litres is a total however many engines the owner has, and Class A above 30 litres must be kept in an isolated place that does not open into any room where people live, work or assemble (s.9(2)). The Act does not define 'attached'. Flamekite found no PESO ruling on a separate day tank or yard tank piped to a DG set, so diesel in one counts toward the 2,500 litre and 1,000 litre test of section 7, and a tank over 1,000 litres is safest treated as bulk storage needing Form XV.

Petroleum Rules 2002 definitions that decide which licence applies

Most licensing questions turn on these 12 words. They come from section 2 of the Act, rule 2 of the Rules as amended in 2024, and PESO's list of products.

Petroleum: Any liquid hydrocarbon or mixture of hydrocarbons, and any inflammable mixture, liquid, viscous or solid, that contains a liquid hydrocarbon (s.2(a)). Petroleum Act 1934
Flash point: The lowest temperature at which the petroleum gives off a vapour that flashes for a moment when ignited, found by the Act's standard test (s.2(e)). Petroleum Act (PESO)
Container: A receptacle for petroleum of not more than 1,000 litres; Class A containers are capped at 300 litres unless the Chief Controller approves a type (rules 2 and 5). Petroleum Rules 2002
Tank: A receptacle of more than 1,000 litres, which since 4 March 2024 includes an ISO tank container. G.S.R. 154(E), 2024
Petroleum in bulk: Petroleum in a tank, whatever the quantity in it: a 2,000 litre tank holding 300 litres is still bulk storage. Petroleum Rules 2002
Installation: Premises specially prepared for storing petroleum in bulk, other than a well-head tank or a service station; licensed on Form XV. Petroleum Rules 2002
Storage shed: A building for petroleum not in bulk, inside an installation or not, other than one holding only petroleum exempt under sections 7 to 9; licensed on Forms XII, XIII or XVI. Petroleum Rules 2002
Protected area: The ground needed to keep the licence's distances clear between an installation, service station or storage shed and any protected work. Petroleum Rules 2002
Hot work: Welding, burning, soldering, brazing, sand blasting, chipping with spark-producing tools, and use of non-flameproof electrical or engine-driven equipment. Petroleum Rules 2002
Heavy machinery and heavy vehicles: Off-highway construction, agricultural, mining and lifting machines and field vehicles, tractors excluded; since 2024 the only machines a Form XIX refueller may fuel on site, besides stationary equipment. G.S.R. 154(E), 2024
Third Party Inspection Agency (TPIA): An organisation recognised by the Chief Controller or a Controller to test and certify under the Rules, alongside individual competent persons, since 2024. G.S.R. 154(E), 2024
Inflammable substances: Acetone, calcium phosphide, calcium carbide, nitro-cellulose film, ethyl alcohol, methyl alcohol and wood naphtha also need a licence under the Petroleum Rules through the Inflammable Substances Act, 1952. PESO

Which Petroleum Rules licence a site needs: 8 common set-ups

The same diesel can need no licence, a district licence or a PESO licence, depending on how it is held. These 8 set-ups cover most offices, factories and stores.

DG set
Engine tank exempt; other diesel counts
Fuel in the tank attached to the engine needs no licence (s.9). Other diesel up to 2,500 litres in receptacles of 1,000 litres or less needs none either. Petroleum Act (PESO)
Factory yard tank
Form XV from the PESO circle office
A diesel tank over 1,000 litres is an installation: Form IX, the rule 144 NOC, a tank test and a safety certificate come first. PSU oil companies apply to PESO's head office. PESO SOP
Drums in a godown
Form XIII, then Form XVI
Class B such as kerosene in drums: Form XIII from the District Authority up to 25,000 litres, Form XVI from a PESO circle office above it. PESO SOP
Solvent or thinner store
Form XII up to 300 litres
Class A not for sale is exempt to 30 litres; Form XII from the District Authority covers up to 300 litres; above that, Form XVI. PESO SOP
Class C fuel
No licence to 45,000 litres, but a prior report
Class C up to 45,000 litres needs no licence, but rules 136 to 140 apply, and storing over 5,000 litres needs a prior report to PESO with a Rs 2,000 scrutiny fee. G.S.R. 154(E), 2024
Consumer pump
Form XIV, as for a retail outlet
A tank feeding a pump outfit that fuels the owner's own vehicles is licensed on Form XIV, the retail outlet form, with the same documents. PESO FAQs
Site bowser
Form XIX refueller
Since 2024, Class B only, for heavy vehicles, heavy machinery and stationary equipment on site; Rs 2,000 a year since 2018. G.S.R. 154(E), 2024
Road tanker
Form XI for each vehicle
Carrying Class A or B in bulk by road needs Form XI; carrying Class C needs no transport licence, PESO's FAQs say. PESO FAQs

Petroleum Rules licence fees and scrutiny fees

Licence fees are charged each calendar year, for each class of petroleum, from Part A of the First Schedule as substituted on 10 August 2018. Scrutiny and service fees are one-time, from Part C as replaced on 4 March 2024.

As published

Form XII, Class A up to 300 litres (District Authority)Rs 1,000 a yearRs 200 in 2002 G.S.R. 762(E), 2018
Form XIII, Class B up to 25,000 litres (District Authority)Rs 1,000 per 1,000 litres a yearOr part of 1,000 litres; Rs 20 in 2002 G.S.R. 762(E), 2018
Forms XIV, XV, XVI and Special Form, each classRs 5,000 a yearFor the first 50 KL, plus Rs 50 per further KL or part; at most Rs 50,000 a year per class G.S.R. 762(E), 2018
Form XI road tanker; Form XIX refuellerRs 2,000 a yearEach G.S.R. 762(E), 2018
Form XVIII, kerosene decantingRs 1,000 a year G.S.R. 762(E), 2018
Competent person's test of an underground tank (rule 126)Rs 1,000 per tankAbove-ground tanks Rs 3,000 to Rs 5,000 by size; inspection of a Form XV installation Rs 3,000 to Rs 15,000 (rule 130) G.S.R. 762(E), 2018
Prior report for Class C over 5,000 litres (rule 140)Rs 2,000Was Rs 500 in 2002; Rs 2,000 since 2018 G.S.R. 154(E), 2024
Alteration approval, amendment or transfer of a licenceRs 2,000 eachRules 146, 147 and 156 G.S.R. 154(E), 2024
Duplicate licence, or a new licence for the unexpired portionRs 1,000Authenticated copy Rs 500 G.S.R. 154(E), 2024
Type approval of a Class A or B containerRs 5,000Rule 4(2) G.S.R. 154(E), 2024
Recognition as a competent person or TPIARs 5,000Renewal Rs 3,000 for 3 years G.S.R. 154(E), 2024
Tank vehicle or refueller fabrication shopRs 1,500Renewal Rs 1,500 for 3 years; mounting drawing Rs 1,000; safety fittings design Rs 2,000 G.S.R. 154(E), 2024
ISO tank container: import permission, or road transport permissionRs 5,000 eachRules 14A and 75(3), since 2024 G.S.R. 154(E), 2024

Licence fees are Part A as substituted by G.S.R. 762(E) of 10 August 2018, read in the eGazette on 26 October 2026; the amendments of 2019, 2021 and 2024 did not change Part A. Fees go by e-payment or the Non-Tax Receipt Portal (rule 13, 2024). The fuel station fee is on the petrol pump page.

Rule 144 NOC for storage licences: who needs it and the exceptions

The District Authority's no-objection certificate is a gate before PESO grants a storage licence. Seven points from the rule, PESO's FAQs and a 2021 Telangana High Court order set its reach.

1. Which licences
Every new licence the Chief Controller or a Controller grants, other than Forms III, XI, XVII, XVIII and XIX: in practice Forms XIV, XV, XVI and the Special Form. Forms XII and XIII are granted by the District Authority itself. Petroleum Rules 2002
2. Who signs
The District Authority; outside police commissionerates that is the District Magistrate, which includes an Additional District Magistrate and, in Punjab, Haryana, Karaikal, Mahe and Yanam, a Sub-divisional Magistrate. Petroleum Rules 2002
3. How it is filed
Two copies of the site plan; the NOC comes with one copy endorsed under the authority's seal. PESO's FAQs say district authorities issue it online through the LSDA module. PESO FAQs
4. What the District Magistrate checks
The applicant's antecedents, lawful possession of the site, the genuineness of the purpose, public interest and the CPCB guidelines, PESO's FAQs say. PESO FAQs
5. An objection
If the District Authority says a licence should not be granted, PESO cannot issue it without the Central Government's sanction (rule 144(4)). Petroleum Rules 2002
6. No NOC in notified areas
Storage inside the notified area of a state-controlled port or airport, or an ISRO or Department of Atomic Energy establishment, needs no district NOC; the consent of that area's authority or the head of the establishment replaces it (rule 144(6)). Telangana High Court
7. Later events
On a licensee's death or disability, the successor's licence for the unexpired portion needs a fresh NOC (rule 157); on expiry or cancellation, the stock must be reported to the District Authority (rule 153). Petroleum Rules 2002

Fire fighting and fire precautions the Petroleum Rules require: 12 items

These 12 duties apply to installations and storage sheds of every size. A PESO inspector can check each against the rule or licence condition named.

An adequate number of portable dry chemical powder or other oil-fire extinguishers in every storage shed and small Class B or C installation, with staff who can use them (rule 117(4)(i)). Petroleum Rules 2002
Fire fighting at new installations to OISD-STD-244; installations approved earlier stay on OISD-STD-117 (rule 117(4)(ii) as substituted in 2024). G.S.R. 154(E), 2024
Foam or water sprinkler attachments on storage tanks wherever the Chief Controller specifies, kept in order (Form XV, condition 18(b)). Petroleum Rules 2002
Dry sand with tools to spread it, or oil-fire extinguishers, kept just outside every Form XVI storage shed (condition 12). Petroleum Rules 2002
A sump not more than 30 cm deep that holds half the licensed quantity in every Form XIII and Form XVI shed. Petroleum Rules 2002
A wall or fence at least 1.8 m high round the protected area of every installation and storage shed (rule 121(1)). Petroleum Rules 2002
No smoking, matches, fire, furnace or light able to ignite vapour, except where the licensing authority allows (rule 117(1) to (3)). Petroleum Rules 2002
Class A sheds ventilated near the floor and the roof, the openings covered with 2 layers of wire gauze of at least 11 meshes per linear cm (Forms XII and XVI). Petroleum Rules 2002
A shed never part of a building where people live, work or assemble unless walled off with no openings, and never under a staircase or escape route (Forms XII and XIII). Petroleum Rules 2002
No work at night in an installation or storage shed unless approved electric lights alone are used (rule 129). Petroleum Rules 2002
A gas-free certificate from a competent person (or TPIA since 2024) before hot work on any tank or container that held petroleum, kept for 3 months (rule 8). G.S.R. 154(E), 2024
A fire or explosion with death or serious injury reported at once to the nearest Magistrate or police station and to the Chief Controller (s.27); since 2024 PESO must visit within 7 days (rule 200). G.S.R. 154(E), 2024

Tank and installation safety numbers in the Petroleum Rules

20 m
Maximum height of a storage tank, or 1.5 times its diameter if that is less (rule 124(3)) Petroleum Rules 2002
5 %
Air space kept in every tank, or the code's figure if smaller (rule 124(4)) Petroleum Rules 2002
2 m
Maximum height of the wall or embankment round tanks in an installation, unless the licensing authority allows more (Form XV) Petroleum Rules 2002
60,000 KL
Most fixed-roof tank capacity in one enclosure; 1,20,000 KL for floating-roof tanks (Form XV) Petroleum Rules 2002
5,000 KL
Above-ground Class A and B above which an installation follows the larger distance tables, as it does with any tank over 9 m across (Form XV, condition 10) Petroleum Rules 2002
90 m
Least distance from any boiler, furnace or fire to a tank over 250 KL in an installation near wells, refineries or petrochemical plants (Form XV) Petroleum Rules 2002
1.5 m
Clear space between protected works and the enclosure of an unlicensed Class C tank over 5,000 litres (rule 138) Petroleum Rules 2002
18 years
Minimum age of anyone employed in loading, unloading or transporting petroleum or in licensed premises (rule 10) Petroleum Rules 2002

Petroleum tank lorries and refuellers: 5 dos, 4 don'ts

Part IV of Chapter III (rules 62 to 86) governs road transport. These come from the rules as amended in 2011 and 2024 and PESO's FAQs.

Do

Carry a 10 kg dry chemical powder extinguisher, away from the discharge faucets, and a 1 kg one in the driver's cabin (rule 72). Petroleum Rules 2002
Put a second person who knows the rules on any vehicle carrying more than 5 KL of Class A or B, or towing a trailer (rule 73(2)). Petroleum Rules 2002
Bond and earth the tank, pipe and chassis, and load at no more than 1 m per second until the pipe is submerged, never above 6 m per second (rule 78). Petroleum Rules 2002
Stop the engine, isolate the battery and brake or scotch the wheels before loading or unloading (rules 79 and 80). Petroleum Rules 2002
For a Form XIX bowser, show the GPS device, the customer list of heavy vehicles, machinery and stationary equipment, and the loading and parking agreements, PESO's FAQs say. PESO FAQs

Don’t

Don't load a tank truck or semi-trailer beyond 40 KL, a tank trailer beyond 5 KL, or a truck and trailer beyond 15 KL together (rules 64 and 66; 40 KL since 2011). G.S.R. 857(E), 2011
Don't park a loaded vehicle on a public road, in a congested area or within 9 m of any source of fire (rule 74). Petroleum Rules 2002
Don't fuel a vehicle or engine straight from a tank vehicle; the 2024 proviso allows only Form XIX refuellers fuelling heavy vehicles, heavy machinery or stationary equipment on site (rule 76(3)). G.S.R. 154(E), 2024
Don't let a site bowser fuel cars, trucks, buses or jerry cans: PESO's March 2022 guideline limits it to stationary equipment and heavy machines, as reported. TeamLease RegTechnews report

Does your petroleum store need a licence or a state fire clearance? 11 cases

The Petroleum Act decides the licence; a state fire law can add its own clearance. Each case names the line that decides it.

If A DG set with 990 litres of diesel in its own base tank
No licence for that fuel: a tank attached to a stationary engine is exempt (s.9). Petroleum Act (PESO)
If 4 barrels of 200 litres of diesel at a building site
No licence, if the diesel is Class B: 800 litres is under 2,500 litres and no receptacle exceeds 1,000 litres (s.7). Petroleum Act 1934
If One 2,000 litre diesel tank, even half full
A licence: a tank over 1,000 litres is bulk storage, so Form XV from the PESO circle office. PESO SOP
If 20,000 litres of kerosene in drums at a dealer's store
Form XIII from the District Authority, which covers Class B not in bulk up to 25,000 litres. PESO SOP
If 40 litres of petrol kept for generators
Within the 100 litre allowance for engines, but above 30 litres it must sit in an isolated place that opens into no occupied room (s.9). Petroleum Act (PESO)
If 30,000 litres of Class C fuel oil in a tank
No licence (s.7), but an enclosure wall or pit, 1.5 m clear to protected works, and a prior report to PESO because it exceeds 5,000 litres (rules 138 and 140). Petroleum Rules 2002
If A 6,000 litre petroleum store in Goa
The fire service's clearance for up to 8,000 litres comes from a Divisional Officer in 15 days; up to 5,000 litres, from an Assistant Divisional Officer. Fire NOC Goa Goa Gazette 2022
If A 5,000 litre petroleum store in Kolkata
West Bengal's fire licence fee is Rs 5,000 for 1,001 to 10,000 litres; up to 90 litres is exempt. Fire NOC West Bengal WB notification 1338
If Diesel and petrol storage in Port Blair
The Deputy Commissioner's licence on Form IX asks for an NOC from the Fire Department; the challan is Rs 260. Fire NOC Andaman and Nicobar South Andaman DC charter
If Diesel inside a building in Itanagar
Only in a properly installed tank in a fire-resisting compartment of the generator room, under the 2019 bye-laws. Fire NOC Arunachal Pradesh 2026 AP Building Bye-Laws 2019
If An HSD tank in the setback of a RIICO industrial plot
A fire or explosives NOC for the tank's location and size, under RIICO's building regulations. Fire NOC for Industry and MSME RIICO land rules

Petroleum Rules licence worked examples: 6 sites

Flamekite's reading of the Rules for 6 example sites. The sites are illustrations; the fees are Part A of the First Schedule as substituted in 2018 and the arithmetic is ours.

Case 1
A factory with one 20 KL HSD tank for its DG sets
Above-ground tank, Class B diesel, no vehicle fuelling.
What applies Form XV: 20 KL is inside the first 50 KL, so Rs 5,000 a year or Rs 15,000 for a 3-year term, plus Rs 2,000 for plan approval; rule 144 NOC, tank test and safety certificate first. G.S.R. 762(E), 2018
Case 2
A plant holding 200 KL of HSD in 2 tanks
One class of petroleum, bulk storage.
What applies Rs 5,000 for the first 50 KL plus 150 x Rs 50 = Rs 12,500 a year, under the Rs 50,000 cap. G.S.R. 762(E), 2018
Case 3
A distributor with 20,000 litres of kerosene in drums
Non-bulk Class B in a shed.
What applies Form XIII from the District Authority: 20 x Rs 1,000 = Rs 20,000 a year; the shed's sump must hold 10,000 litres, half the licensed quantity. G.S.R. 762(E), 2018
Case 4
A lubricant and solvent depot with 60,000 litres of Class B in drums
Non-bulk, above the District Authority's 25,000 litres.
What applies Form XVI: Rs 5,000 + 10 x Rs 50 = Rs 5,500 a year; the shed stays 4.5 m from protected works (over 50,000 to 1,00,000 litres). G.S.R. 762(E), 2018
Case 5
One shed with 2,000 litres of Class A solvent and 20,000 litres of Class B
Mixed classes in drums.
What applies The whole 22,000 litres counts as Class A, so 7.5 m to protected works; Class A over 300 litres with another class needs Form XVI. Petroleum Rules 2002
Case 6
A 12 KL tank truck towing a trailer
Class B diesel by road.
What applies The pair may carry 15 KL in all, so the trailer takes at most 3 KL; a tank truck of more than 12 KL may not tow a tank trailer at all (rule 66). Petroleum Rules 2002

Where Petroleum Rules applications and licences go wrong

Most refusals and breaches come from 7 misreadings of the Act, the licence forms and PESO's own guidance.

If A tank is bought and set in its foundation before PESO sees a drawing
Get prior approval of plans under rule 131 first; any later change needs an approved drawing before work (rule 146). Petroleum Rules 2002
If One 2,000 litre tank is treated as exempt because the total is under 2,500 litres
Section 7 also requires that no receptacle exceed 1,000 litres; a larger tank is bulk storage and needs Form XV. Petroleum Act 1934
If Two small sheds side by side, each under its limit
Class A sheds or bins within 6 m count as one shed (Form XII), and Class B sheds within 3 m count as one (Form XIII). Petroleum Rules 2002
If Class C kept with diesel or petrol on the strength of the 45,000 litre exemption
Rule 137 bars storing Class C with any other class except under a licence; mixed stock takes the most flammable class's distances. Petroleum Rules 2002
If Reading PESO's FAQs as needing approval for any Class C under 45 KL
Rule 140 asks for a prior report only above 5,000 litres; the FAQs themselves say the rules prevail. PESO FAQs
If A renewal filed without answering PESO's last inspection
PESO's FAQs list a compliance report on any recent inspection among the Form XV renewal documents. PESO FAQs
If The licence lapses with fuel still in the tanks
Tell the District Authority the class and quantity at once; it may grant a temporary licence of up to 3 months (rule 153). Petroleum Rules 2002

Petroleum Act 1934 penalties after the Jan Vishwas Acts

The Act's fines are still Rs 1,000 and Rs 5,000: Flamekite searched both Jan Vishwas Acts in full and neither touches the Petroleum Act. Confiscation is the heavier risk.

Offence	Penalty	Law
Importing, transporting or storing petroleum against the Act or the rules, such as above a licence-free limit	Simple imprisonment up to 1 month, a fine up to Rs 1,000, or both	Section 23(1)(a) and (b) Petroleum Act 1934
A licensee or person in charge breaking, or letting others break, a licence condition	Up to 1 month, Rs 1,000, or both	Section 23(1)(c) Petroleum Act 1934
Obstructing an inspecting officer, or refusing to show petroleum or allow samples	Up to 1 month, Rs 1,000, or both	Section 23(1)(d) and (e) Petroleum Act (PESO)
Failing to give notice of a fire or explosion with death or serious injury	Up to 1 month, Rs 1,000, or both	Sections 23(1)(f) and 27 Petroleum Act (PESO)
Any of these again after a conviction	Up to 3 months, a fine up to Rs 5,000, or both	Section 23(2) Petroleum Act 1934
Storing more than the permitted quantity	The Magistrate may confiscate the whole quantity and its receptacles	Section 24 Petroleum Act (PESO)
Suspected unlawful import, transport, storage or refining	Entry, search and seizure by officers the Centre authorises	Section 26 Petroleum Act (PESO)

Section 23's amounts stand as printed on 25 October 2026. The Jan Vishwas (Amendment of Provisions) Act, 2023 amended 42 Acts and the Act of 2026 (Act 8 of 2026) amended others, including the Petroleum and Minerals Pipelines Act, 1962; neither names the Petroleum Act, 1934. The draft Petroleum (Amendment) Bill, 2026 is not law.

Petroleum Rules 2002 amendments from 2002 to 2026

Every final amendment and published draft Flamekite found, with the Gazette number. Four amendments were in force on 25 October 2026.

30 March 1937
The Petroleum Act, 1934 comes into force. Petroleum Act (PESO)
13 March 2002
The Petroleum Rules, 2002 (G.S.R. 204(E)) replace the 1976 Rules, after draft G.S.R. 357(E) of 15 May 2001. Petroleum Rules 2002
1 December 2011
G.S.R. 857(E): tank trucks may carry 40 KL instead of 25 KL, approved fabricators build tank vehicles, and electrical apparatus rules are rewritten. G.S.R. 857(E), 2011
10 August 2018
G.S.R. 762(E) replaces the First Schedule: licence fees move to Part A (Rs 5,000 for the first 50 KL, up to Rs 50,000 a year per class), with competent person fees in Part B and other fees in Part C. G.S.R. 762(E), 2018
29 May 2019
G.S.R. 384(E) amends Forms VIII, IX and XIX; no fee changes. G.S.R. 384(E), 2019
17 March 2021
G.S.R. 196(E) adds railways to the rule 144(6) list beside ports and airports; the last amendment before 2024. G.S.R. 196(E), 2021
2 September 2021
Draft G.S.R. 614(E) proposes ISO tank, heavy machinery and TPIA provisions; it was not finalised in that form. Draft G.S.R. 614(E)
11 August 2023
The Jan Vishwas Act, 2023 decriminalises offences in 42 Acts; the Petroleum Act is not among them. Jan Vishwas Act 2023
31 October 2023
Draft G.S.R. 814(E) is published for 45 days of comment. G.S.R. 154(E), 2024
4 March 2024
G.S.R. 154(E): ISO tank containers, import by air, TPIAs, OISD-STD-244, Form XIX limited to Class B, and new Part C fees. G.S.R. 154(E), 2024
7 April 2026
The Jan Vishwas Act, 2026 (Act 8 of 2026) receives assent; again the Petroleum Act is untouched. Jan Vishwas Act 2026
3 September 2026
Draft G.S.R. 781(E) proposes longer ISO tank permissions and a District Fire Officer definition, as reported. TeamLease RegTechnews report
30 September 2026
MoPNG's draft Petroleum (Amendment) Bill, 2026 is reported open for comment. Outlook Businessnews report

Petroleum Rules drafts and PESO orders in the news, 2022 to 2026

From news reports, not yet an official source.

Neither 2026 draft was in force on 25 October 2026. Flamekite did not find the Gazette text of draft G.S.R. 781(E); the reports below are labelled news.

28 March 2022
TeamLease RegTech reports PESO's Form XIX bowser guideline of 25 March 2022: HSD only for stationary equipment, heavy machinery and heavy vehicles, a GPS device on every bowser and refuelling only at geo-fenced sites. TeamLease RegTechnews report
3 September 2026
TeamLease RegTech reports draft Petroleum (Amendment) Rules, 2026 (G.S.R. 781(E)), open for 30 days of comment from 4 September 2026. TeamLease RegTechnews report
5 September 2026
News on AIR reports the draft would allow ISO tank import and transport permissions of up to 3 years, with deemed approval of a complete application in 7 working days, filed on PESO's portal. News on AIRnews report
30 September 2026
Outlook Business reports the draft Petroleum (Amendment) Bill, 2026 would raise the ceiling for unlicensed activity to 3 years or Rs 25 crore, against section 23's Rs 1,000 today. Outlook Businessnews report

Petroleum Rules myths about diesel and storage

You may have read
Diesel is Class C, so 45,000 litres need no licence.
Myth
What the sources say
Class depends on the fuel's flash point. BPCL's data sheet gives normal HSD a flash point above 35 °C, inside Class B's 23 °C to below 65 °C; only high-flash HSD above 66 °C is Class C. BPCL HSD MSDSnews report
You may have read
Anything under 2,500 litres of diesel is exempt.
Myth
What the sources say
Section 7 also requires that no receptacle hold more than 1,000 litres. Petroleum Act 1934
You may have read
A DG set needs a PESO licence for its fuel.
Myth
What the sources say
Fuel in a tank attached to a stationary engine is exempt under section 9; other diesel on the site is counted under section 7. Petroleum Act (PESO)
You may have read
Every petroleum licence needs the District Magistrate's NOC.
Myth
What the sources say
Only new PESO licences other than Forms III, XI, XVII, XVIII and XIX, and none inside a notified port, airport, ISRO or atomic energy area (rule 144(6)). Telangana High Court
You may have read
Class C below 45,000 litres carries no duties.
Myth
What the sources say
Rules 136 to 140 still apply: tanks over 5,000 litres need an enclosure, 1.5 m clearance and a prior report to PESO. Petroleum Rules 2002
You may have read
The Jan Vishwas Act raised the Petroleum Act's penalties.
Myth
What the sources say
Neither the 2023 nor the 2026 Jan Vishwas Act amends the Petroleum Act, 1934. Jan Vishwas Act 2023
You may have read
PESO's Petroleum Rules PDF is the current text.
Myth
What the sources say
PESO's copy still shows a 25 KL tank truck limit that the 2011 amendment raised to 40 KL; read it with each Gazette amendment. G.S.R. 857(E), 2011

Where to read the Petroleum Rules 2002 PDF and amendments

These 9 official copies and portals were open on 25 October 2026. PESO's copy of the Rules is not updated for every amendment, so read it with the Gazette notifications.

Rules
Petroleum Rules, 2002: PESO text
The 2002 Rules with all forms and schedules (not consolidated for 2011 or later) Petroleum Rules 2002
peso.gov.in/web/sites/default/files/2019-12/PR-2002-English-full.pdf
Gazette
Petroleum (Amendment) Rules, 2024
G.S.R. 154(E) of 4 March 2024, the latest final amendment G.S.R. 154(E), 2024
peso.gov.in/web/sites/default/files/2024-03/Petroleum%20Amendment%20Rules%202024%20GSR%20154E%20dt%2004-03-2024.pdf
Gazette
Petroleum (Amendment) Rules, 2011
Scanned Gazette of G.S.R. 857(E), on MoPNG's acts page MoPNG
mopng.gov.in/files/TableManagements/amd2011.pdf
Act
Petroleum Act, 1934: PESO copy
The Act with comments, sections 1 to 32 Petroleum Act (PESO)
peso.gov.in/web/sites/default/files/2019-12/PR_Act_full.pdf
Guidance
PESO SOP for the Petroleum Rules
Who grants each form and the documents for each transaction PESO SOP
peso.gov.in/web/sites/default/files/2025-01/Petroleum%20Rules%202002%20-%20SOP.pdf
Guidance
PESO FAQs on the Petroleum Rules
Licence-free quantities, Form XV, XVI, XIX and XIV papers, LSDA PESO FAQs
peso.gov.in/web/sites/default/files/2024-08/Revised%20FAQs%20on%20PR%202002%20PDF.pdf
Guidance
PESO list of petroleum requiring a licence
Products from crude oil and HSD to toluene, and inflammable substances PESO
peso.gov.in/web/sites/default/files/2024-12/List%20of%20Petroleum%20Requiring%20License.pdf
Apply
PESO online licensing
Applications, renewals and status for Petroleum Rules licences (login) PESO online
online.peso.gov.in/PesoOnline
Apply
National Single Window System: PESO
Registration before any PESO application; helpline 1800-233-9011 NSWS
www.nsws.gov.in/portal/peso

What Flamekite could not confirm about the Petroleum Rules

Five gaps a careful reader should know about, as of 25 October 2026.

G.S.R. 938(E) of 2018, which PESO cites beside 762(E), was not found in the eGazette's MoPNG or Commerce listings for August to October 2018; if it changed Part A, the fees above would differ. PESO's consolidated copy still prints the 2002 fee table, so do not rely on it for fees. MoPNG's scan of the 2011 Gazette also stops at page 25.

The installation distance tables. Tables 1 and 3 under Form XV (distances between tanks, sheds, loading bays, pumps, offices and the boundary) come out scrambled in the text layer of PESO's copy, so no cell from them is published here; only the Table 2 notes and the 90 m boiler rule are. OISD-STD-117, 118 and 244, which the rules call up, were not read because oisd.gov.in failed with a certificate error.

Diesel's class and day tanks. No official text read states the class of HSD; the Class B reading rests on BPCL's data sheet and the Act's bands. Nor did Flamekite find a PESO ruling on whether a day tank piped to a DG set is 'attached' to the engine under section 9. The LSDA portal's own address, any district fee for the rule 144 NOC, and the Gazette text of the 2026 draft rules were not found.

Questions about the Petroleum Rules 2002

What are the Petroleum Rules 2002?: The Petroleum Rules, 2002 (G.S.R. 204(E) of 13 March 2002) are the Central Government's rules under the Petroleum Act, 1934 for importing, transporting, storing, refining and testing petroleum. PESO and the District Authority license under them; they were last amended on 4 March 2024 by G.S.R. 154(E).
How much diesel can I store without a licence?: If the diesel is Class B, up to 2,500 litres at one place, provided no receptacle holds more than 1,000 litres (section 7 of the Petroleum Act). A single tank over 1,000 litres needs a Form XV licence whatever it holds. Fuel in a generator's own attached tank is exempt under section 9.
Is diesel Class B or Class C petroleum?: It depends on the flash point on the fuel's certificate. Class B runs from 23 °C to below 65 °C; BPCL's data sheet gives normal HSD a flash point above 35 °C and high-flash HSD above 66 °C, which would be Class C with its 45,000 litre exemption.
What is the difference between Form XV and Form XVI?: Form XV licenses an installation, where petroleum is stored in bulk in tanks over 1,000 litres. Form XVI licenses a storage shed for petroleum in drums and cans above the District Authority's limits: Class A over 300 litres, Class B over 25,000 litres or Class C over 45,000 litres. Both come from PESO circle offices.
Which petroleum licences does the District Authority issue?: Form XII for Class A up to 300 litres and Form XIII for Class B up to 25,000 litres not in bulk, plus the rule 144 NOC for PESO licences. The District Authority is the District Magistrate, or the Commissioner or a Deputy Commissioner of Police in a commissionerate town.
Which licences need a rule 144 NOC?: Every new licence granted by the Chief Controller or a Controller except Forms III, XI, XVII, XVIII and XIX, so storage on Forms XIV, XV, XVI and the Special Form. No NOC is needed inside a notified port, state airport, ISRO or atomic energy area, where that authority's consent replaces it.
What is the penalty for storing petroleum without a licence?: Up to 1 month's simple imprisonment, a fine of up to Rs 1,000, or both under section 23 of the Petroleum Act; a repeat offence carries up to 3 months or Rs 5,000. The Magistrate may also confiscate the whole stock. The Jan Vishwas Acts of 2023 and 2026 did not change these amounts.
Where can I download the Petroleum Rules 2002 PDF?: PESO hosts the 2002 text with all forms at peso.gov.in, and the 2024 amendment (G.S.R. 154(E)) as a separate Gazette PDF; MoPNG hosts the 2011 amendment. PESO's copy is not consolidated for every amendment, so read it with the Gazette notifications listed on this page.

Keep reading

Petroleum Rules MCQPractice questions on classes, licences, storage and fees, each cited to its rule.
Fire NOC for petrol pumpsForm XIV, the 2024 district NOC proforma and the CPCB siting rule.
Fire NOC for factoriesHow a factory's fire approval sits beside its petroleum licence.
Fire NOC for industriesIndustrial plots, setbacks and HSD tanks.
Fire NOC for warehousesStorage lines and fuel kept in a store.
Fire NOC for godownsHazardous-goods godowns and the quantities that bring in PESO.
Fire NOC for LPG godownsGas cylinder storage under the Gas Cylinders Rules.
Fire NOC for data centresDG sets, diesel tanks and the fire rules for data halls.

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Petroleum Rules 2002 at a glance: 12 facts

Storage shed distances under Form XVI by class and quantity

Licensing a diesel tank or drum store under the Petroleum Rules in 8 steps

Fix the class and the quantity

Pick the licence

File for prior approval

Take the rule 144 NOC

Build to the approved plan

Test and certify

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