Diesel & HSD (High-Speed Diesel) are classified as Class B petroleum products, which are flammable and regulated by the Petroleum and Explosives Safety Organization (PESO). If you’re planning to store diesel in bulk, you must follow licensing and safety norms. In this blog, we’ll break down the PESO licensing requirements for diesel and HSD storage facilities in India.

Who Needs a Diesel or HSD Storage License?
- Transport companies
- Manufacturing industries
- Mining and construction businesses
- Fuel stations
- Private bulk users storing over 2,500 liters
PESO Regulations for Diesel & HSD
- Governed under the Petroleum Rules, 2002
- Storage above threshold quantities requires a PESO license
- Tanks must meet BIS safety standards
- Mandatory NOC from local fire and municipal authorities
Licensing Process for Diesel & HSD Storage
Step 1: Site Plan & Safety Setup
- Proper tank placement
- Venting, earthing, and distance criteria
Step 2: Document Preparation
- Land documents, Fire NOC, tank manufacturer’s certificate, layout drawing
Step 3: Online PESO Application
- Apply on the PESO portal: https://peso.gov.in
Step 4: PESO Site Inspection
- Officers check tank specs, layout, and safety systems
Step 5: License Approval
- License granted after successful inspection
Safety & Compliance Guidelines
- Tank construction must comply with IS 10987
- Install fire extinguishers & spark arrestors
- Restricted public access
- Clearly marked fuel signage
Common Mistakes to Avoid
- Using non-compliant tanks
- Skipping fire NOC
- Incomplete layout drawings
- Applying without site readiness
How PESO Consultants Help You
- Site inspection and compliance checklist
- Documentation support
- Online application filing
- Quick turnaround on approvals
- Services available in Hyderabad, Vizag, Bangalore
FAQs About Diesel & HSD Storage Licensing
1. Is PESO license required for diesel storage under 2,500 liters?
A: No, only bulk storage above that limit needs licensing.
2. How long does it take to get a diesel tank license?
A: It takes 30–60 days after site inspection.
3. What is the penalty for storing diesel without PESO approval?
A: Legal action, heavy fines, and sealing of the facility.
Conclusion
Compliance with PESO rules is essential when storing diesel or HSD in bulk. Understanding the licensing requirements helps you avoid fines, delays, and accidents. If you’re setting up a facility, work with experienced consultants to ensure safe and legal operations.