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Types of Petroleum Storage Tanks: Underground vs. Aboveground

Introduction

Petroleum storage tanks play a crucial role in storing fuels like diesel, petrol, and HSD (High-Speed Diesel) for commercial, industrial, and transportation use. In India, these tanks must comply with the guidelines set by the Petroleum and Explosives Safety Organization (PESO). Choosing the right tank—underground or aboveground—depends on safety, space, compliance, and operational needs.

What Are Petroleum Storage Tanks?

Petroleum storage tanks are specialized containers designed to store flammable liquids like diesel, petrol, kerosene, and other fuels. These tanks are governed by the Petroleum Rules, 2002 and require proper licensing from PESO to operate legally in India. Based on installation type, storage tanks are broadly classified into:

  • Underground Storage Tanks (USTs)
  • Aboveground Storage Tanks (ASTs)
underground and aboveground petroleum storage tanks
An informative visual comparison by Explosive Consultant showing the key differences between underground and aboveground petroleum storage tanks. The image highlights benefits like space-saving with underground tanks and easier leak monitoring with aboveground tanks. Ideal for industries seeking guidance on storage safety and PESO compliance in India.

Underground Storage Tanks (USTs)

Underground tanks are buried below the earth’s surface and are commonly used in petrol pumps and space-restricted industrial areas.

Advantages:

  • Saves space
  • Safer from weather exposure and physical damage
  • Aesthetic – doesn’t affect landscape visibilty

Disadvantages:

  • High installation and excavation cost
  • Difficult to detect leaks
  • Costly maintenance and inspection

Aboveground Storage Tanks (ASTs)

Aboveground tanks are installed on the surface and are widely used in factories, agricultural facilities, and bulk fuel stations.

Advantages:

  • Easy to install, inspect, and maintain
  • Lower cost compared to USTs
  • Easier to detect leaks or corrosion

Disadvantages:

  • Needs more space
  • Vulnerable to weather and external damage
  • May require shielding or containment walls

Comparison Table: Underground vs. Aboveground Tanks

FeatureUnderground Tanks (USTs)Aboveground Tanks (ASTs)
Installation CostHigherLower
Space SavingYesYes
MaintenanceDifficultEasy
Leak DetectionComplexSimple
Weather ProtectionGoodRequires shielding
PESO LicensingRequiredRequired

Regulations and PESO Compliance

Whether you choose a UST or AST, both must follow PESO regulations:

  • Site layout approval
  • Fire NOC from local authorities
  • Use of certified tanks (as per IS standards)
  • Proper venting, earthing, and hazard signage
  • Leak detection systems for underground tanks

Industry Usage & Suitability

  • USTs: Fuel stations, city-based facilities, limited space areas
  • ASTs: Transport depots, rural fuel storage, industrial operations

Choose the tank based on safety, land availability, maintenance flexibility, and PESO documentation.

Conclusion

Choosing between an underground or aboveground petroleum storage tank depends on your operational needs, compliance requirements, and budget. Both have pros and cons, but in all cases, PESO licensing is a must. For guidance on PESO approvals, tank installation, or fuel safety standards, consult a certified explosive consultant.

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