Petroleum and Gas

Petroleum and Gas Industry Licences in India: Complete Approval & Compliance Guide

The petroleum and gas industry in India is one of the most highly regulated sectors due to the hazardous and inflammable nature of petroleum products and gases such as LPG, CNG, and PNG. Any business involved in storage, transportation, distribution, or retail sale of petroleum and gas must obtain multiple statutory approvals before commencing operations.

This guide explains petroleum and gas industry licences in India, mandatory approvals, Fire Safety requirements, tax registrations, and the cost of LPG dealership licence in India.

Overview of Petroleum and Gas Industry Approvals and Licences

Businesses operating in the petroleum and gas sector are regulated under various central and state laws, including:

• Petroleum Act, 1934

• Explosives Act, 1884

• Petroleum Rules, 2002

• Gas Cylinders Rules, 2016

Licences are issued by authorities such as PESO (Petroleum and Explosives Safety Organisation), State Fire Department, Oil Marketing Companies (OMCs), and local authorities.

Types of Petroleum and Gas Industry Licences in India

1. Petroleum Storage Licence

A petroleum storage licence is mandatory for storing petrol, diesel, kerosene, or other petroleum products beyond prescribed limits.

Issued by:

• PESO (Chief Controller of Explosives)

Required for:

• Fuel depots

• Bulk storage tanks

• Petroleum warehouses

2. Petroleum Retail Outlet Licence (Petrol Pump Licence)

Required to operate petrol pumps and fuel stations.

Approvals include:

• PESO approval

• Fire Safety NOC

• Environmental clearance

• District authority permissions

3. LPG Dealership Licence

Required for storage, bottling, and distribution of LPG cylinders.

Issued by:

• Oil Marketing Companies (IOCL, BPCL, HPCL)

• PESO approval for storage and handling

4. Gas Cylinder Storage & Filling Licence

Mandatory for businesses dealing with compressed gases such as LPG, CNG, and industrial gases.

5. Transportation Licence

Required for transporting petroleum products via tankers or pipelines.

Fire Safety NOC for Petroleum Gas Station in India

The Fire Safety NOC for petroleum gas stations in India is a mandatory approval.

Fire Safety NOC is required for:

• Petrol pumps

• LPG godowns

• Gas filling stations

• Petroleum storage facilities

The Fire Department verifies:

• Firefighting systems

• Emergency exits

• Storage safety measures

• Distance norms

Without Fire Safety NOC, PESO licence will not be granted.

PAN & GST Registration for Petroleum Business

PAN and GST registration for petroleum business is mandatory for legal operations.

PAN Registration

• Required for tax compliance

• Mandatory for opening bank accounts and obtaining licences

GST Registration

GST registration is required for:

• LPG distribution

• Gas transportation services

• Lubricants and petroleum-related services

Note: Petrol and diesel are currently outside GST, but GST still applies to related services and products.

Cost of LPG Dealership Licence in India

The cost of LPG dealership licence in India depends on multiple factors such as location, storage capacity, and infrastructure.

Approximate Cost Breakdown:

Costs may vary based on state norms and dealership category.

Compliance Requirements for Petroleum and Gas Businesses

Businesses must ensure ongoing compliance, including:

• Licence renewals

• Safety audits

• Fire system maintenance

• Stock and storage compliance

• Periodic inspections by PESO and Fire Department

Non-compliance can result in heavy penalties, suspension, or cancellation of licences.

Why Professional Assistance Is Important

Petroleum and gas licences involve:

• Technical drawings and safety layouts

• Multiple departmental approvals

• Site inspections and safety compliance

Professional consultants help avoid:

• Application rejection

• Delays in approvals

• Costly compliance errors

Understanding petroleum and gas industry approvals and licences in India is crucial before starting or expanding operations. From PESO licence and Fire Safety NOC to PAN & GST registration, every approval ensures safety, legality, and operational continuity.

Proper licensing not only protects public safety but also safeguards your business from legal risks.