Diesel Storage Licence for DG Sets & Factories — Limits, Forms, Fees

Quick answer: Diesel is Class B petroleum: up to 2,500 litres can be stored without a licence. Above that, a DG-set day tank, hospital or factory diesel store needs a licence — Form XIII from the District Authority for non-bulk storage up to 25,000 litres (₹20 per 1,000 litres a year), or a PESO Circle licence (Form XV/XVI) for bulk installations. Delhi high-rises, data centres, hospitals and Bawana/Okhla units are the usual cases; we assess the quantity, choose the form, and file with the DM/DC NOC where needed.

Last verified 4 October 2026 — rules on this page checked against the current notifications. We update it the day a rule changes.

Do you need a licence? — the quantity test

Diesel stored (all tanks on the premises)RequirementAuthorityOfficial fee
Up to 2,500 litresNo licence (Class B licence-free limit); storage rules still apply——
2,500 – 25,000 litres, non-bulk (drums / small tanks)Form XIII licenceDistrict Authority (DM / DC)₹20 per 1,000 litres per calendar year
Bulk storage (installed tanks above the non-bulk definition)Form XV / XVI licencePESO Circle Office, with DM/DC NOCPer PESO's current user-charges schedule (two conflicting blog tables circulate — we quote the live schedule)
Transport by road tankerForm XILicensing authority₹500 per calendar year
Where this bites in NCR: a 1,000 kVA DG set with a 990-litre day tank plus a 5,000-litre bulk drum store is over the limit even though each tank "looks small" — the test is the total on the premises. Hospitals, data centres, malls and group housing in Delhi and Gurugram, and Bawana/Okhla/Sahibabad factories with generator banks, are the standard Form XIII or bulk-licence cases. Fire NOC and DPCC consent for DG sets run in parallel.

Documents and site requirements

What we do

Illustrative client engagement — details anonymised.
Client: A Gurugram data centre with four DG sets and a 20,000-litre diesel store.
Situation: Operating on the equipment vendor's assurance that 'no licence is needed for diesel'; an audit by a hyperscale tenant flagged it.
Approach: Quantified total storage, prepared the installation drawings, obtained the DC NOC and filed with the PESO North Circle; aligned the HSPCB consent for the DG sets.
Outcome: Licence granted; tenant audit closed; renewal calendared annually.
Client identity and certain details have been changed or withheld to protect confidentiality. Outcomes depend on individual facts and are not a guarantee of results.

Full PESO practice — petrol pumps, LPG, CNG, explosives: PESO licence consultant.

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Frequently asked questions

How much diesel can I store without a PESO licence?

Up to 2,500 litres of Class B petroleum on the premises in total. Above that you need a Form XIII licence (non-bulk, up to 25,000 litres) from the District Authority or a PESO Circle licence for bulk storage.

Do I need a licence for a DG set day tank?

Only if the total diesel on the premises — day tanks plus any store — exceeds 2,500 litres. Most single small gensets are below it; generator banks, hospitals and data centres are above it.

What is the fee for a Form XIII diesel licence?

₹20 per 1,000 litres (or part) per calendar year under the First Schedule to the Petroleum Rules, 2002; renewal is the same fee each year.

Who issues the licence in Delhi, Noida, Gurugram and Patna?

Form XIII: the District Authority — the revenue-district DM in Delhi, Gautam Buddh Nagar DM for Noida, Gurugram/Faridabad DC, Patna DM. Bulk Form XV/XVI: the PESO Circle Office (North Circle for Delhi and Haryana; Bihar under the East Circle), after the DM/DC NOC.

Is DPCC or UPPCB consent also required for DG sets?

Yes — DG sets above the exempted capacity need the state board's consent or registration, independent of the petroleum licence; both are inspected together.

How long does a diesel storage licence take?

Form XIII through the District Authority typically clears within weeks of a complete file; bulk PESO licences take longer because the NOC and installation inspection precede grant.