How to Obtain a PESO License for Your LPG Dealership Business

It is an exciting venture that comes with its fair share of challenges. Along with investment, land and a good local network, obtaining a PESO license is the crucial step to embark on the journey. Learn the importance of PESO license and step-by-step process to obtain this crucial permit and ensure your LPG business operates safely and legally.

What is PESO License 

A PESO license is a permit issued by the Petroleum and Explosives Safety Organization (PESO), which operates under the authority of the Department of Commerce and Industry in India. PESO is responsible for ensuring the safety and security of operations related to petroleum, explosives, compressed gases, and other hazardous substances.

For LPG dealers, having a PESO license is crucial as LPG is a highly flammable gas, and handling it requires strict safety measures to prevent accidents. The license verifies you meet these standards, protecting your staff, customers, and the public.

Here’s why PESO is critical for LPG dealership business:

1. PESO regulations ensure proper storage, handling, and transportation of LPG, a highly flammable gas.
2. A PESO license shows you're a legitimate business, fostering trust with suppliers and customers.
3. Running an LPG dealership without a PESO license is illegal and can lead to hefty fines or even business closure.
4. Obtaining insurance for your LPG dealership might be difficult or significantly more expensive without a PESO license.

Process to get PESO Initial Approval

Step 1 – Gather Required Documentation

• Request Letter with Letter Head
• Business registration documents (e.g., Certificate of Incorporation, GST certificate), PAN card, and address proof.
• Letter of Intent from the company/ supplier
• Ownership documents for your proposed storage and distribution facility, along with detailed layout plans.
• Four copies of specifications and plans approved under Rule 55.
• Requisite amount of fee for the initial approval.

Step 2 – Submit the Application

• Visit PESO website and submit the application through PESO’s Online Licensing System
• Sign Up/ Login, fill in the details and attach the required documents.

Step 3 – Application Assessment

• PESO will thoroughly examine your application and supporting documents to ensure they meet all safety and regulatory requirements.

Once the process is through, initial approval will be provided to construct a Godown.

PESO Final Approval

After obtaining local NOC and constructing the Godown. 

Step 1 - Revisit the PESO portal to apply for final / grant license.

Step 2- Upload Godown images and approved layout plan

Step 3 - Facility Inspection

• PESO officials will schedule an inspection of your proposed storage and distribution facility to verify adherence to safety regulations.

Step 4 – Granting of PESO License

• Upon successful document review, PESO will grant you the official license to operate your LPG cylinder dealership.

Additional Tips

• Consult with a professional who can guide you through specific requirements based on your business model (retail, bulk supplier, etc.).
  
  
• Prioritize safety measures in your facility layout, including proper ventilation, fire prevention systems, and clear signage.
  
  
• Stay updated on any changes or revisions to PESO regulations for LPG businesses.

Remember that PESO approval, is not a regulatory hurdle, it is your commitment to safety. If you’re planning to start an LPG dealership, consider partnering with a company like SUPERGAS, which prioritizes strict adherence to safety protocols. Choosing a proactive and compliant partner ensures the safety of people and the surrounding environment, helping you build a sustainable and trusted business in the competitive LPG market.