LPG Rules: Is a license required to keep more than 5 gas cylinders in a shop?

If you use commercial LPG cylinders in your shop, hotel, or restaurant, this information is relevant to you. Storing cylinders beyond the prescribed limit may require a license and safety clearance.

If you use commercial LPG cylinders in a shop, hotel, restaurant, sweet shop, or any other business, it is crucial to be aware of the regulations governing gas cylinders. Storing multiple cylinders simultaneously may require specific permissions and safety clearances, as there are defined limits for keeping LPG cylinders on commercial premises. Let us understand at what point a license becomes mandatory.

At what point is a license required for storing LPG cylinders?

Adhering to the prescribed limits for LPG storage on commercial premises is essential. Generally, storage of up to 100 kg of LPG—approximately five cylinders—is permitted. If you need to store LPG beyond this limit, you may require additional permissions and a license. Storing large quantities of LPG cylinders may necessitate a storage license from PESO (Petroleum and Explosives Safety Organization). Additionally, approvals from the local administration and the fire department may be required.

What is the process for obtaining a PESO storage license?

If your business requires storing LPG beyond the prescribed limit, you may need to apply for a PESO license. Typically, you will need to prepare several business-related documents for this purpose:

Site and layout plan of the LPG storage area.
Proof of ownership for the shop or premises.
A valid rent or lease agreement (if the premises are rented).
Company PAN card and GST-related documents.
Valid trade license.
Necessary No Objection Certificate (NOC) from the fire department.

Required approvals from the district administration or police department.

After the application and documents are submitted, the concerned officials may inspect the storage site. During the inspection, they evaluate factors such as the cylinder storage area, room ventilation, safety measures, and emergency preparedness. The licensing process moves forward once safety standards are met.

Why is it necessary to obtain a Fire NOC and a trade license?

Businesses using commercial LPG should not rely solely on permission for gas storage; ensuring the safety of the premises may require a Fire NOC from the local fire department. The fire department may inspect the premises' safety arrangements, as they evaluate the designated LPG storage area and fire safety measures.

Additionally, if you operate a business—such as a shop, restaurant, or hotel—you may also need a trade license in accordance with local municipal regulations. Therefore, if you plan to keep more than five commercial LPG cylinders on your premises, avoid storing excess gas without the necessary permissions.