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) | Requirement | Authority | Official fee |
|---|---|---|---|
| Up to 2,500 litres | No licence (Class B licence-free limit); storage rules still apply | — | — |
| 2,500 – 25,000 litres, non-bulk (drums / small tanks) | Form XIII licence | District Authority (DM / DC) | ₹20 per 1,000 litres per calendar year |
| Bulk storage (installed tanks above the non-bulk definition) | Form XV / XVI licence | PESO Circle Office, with DM/DC NOC | Per PESO's current user-charges schedule (two conflicting blog tables circulate — we quote the live schedule) |
| Transport by road tanker | Form XI | Licensing authority | ₹500 per calendar year |
Documents and site requirements
- Site plan showing tank location, dyke/bund, distances from buildings and boundary
- Tank specification, capacity certificate and test certificate; piping and earthing details
- Ownership or lease proof of the premises; applicant's PAN and ID
- Fire-fighting arrangements (extinguishers, sand) and emergency plan
- District Magistrate / DC NOC for retail outlets and bulk installations
- Pollution consent for the DG set and the generator's CPCB-compliant certificate
What we do
- Quantity audit and form selection; Form XIII with the District Authority or Form XV/XVI with the PESO Circle
- Drawings and safety documentation that survive the inspection; DM/DC NOC file
- Renewals each calendar year (same fee; apply 30 days before expiry), amendments on capacity change
- Parallel DPCC/UPPCB/HSPCB consent for DG sets and fire NOC
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.
Talk to us before you file anything
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.