The Petroleum Act, 1934 is the primary legislation in India governing the import, transport, storage, production, refining, and blending of petroleum products.
Categorisation in Classes A, B, and C
Petroleum products are classified into three main categories, based on their flash point, which is the lowest temperature at which the product emits vapors that can ignite in air.
Class | Definition | Flash Point (°C) |
Class A | Having a flash point below 23°C | Below 23°C |
Class B | Having a flash point equal to or above 23°C but below 65°C | 23°C to below 65°C |
Class C | Having a flash point equal to or above 65°C but below 93°C | 65°C to below 93°C |
Note:
Common Fuels & Their Classification
Fuel Type | Category (Class) | Flash Point (approx.) | Industry Use |
Petrol (Motor Spirit) | Class A | < 23°C | Automotive, Retail Fuel Stations |
Naphtha | Class A | ~15°C | Petrochemicals, Fertilizers |
Kerosene | Class B | ~38°C | Cooking, Illumination, Aviation |
Diesel (HSD) | Class B | ~55°C | Transportation, Generators |
Furnace Oil (FO) | Class C | ~66–75°C | Boilers, Power Plants, Industrial Heating |
Light Diesel Oil (LDO) | Class C | ~66°C | Small Industries, Boilers |
Licensing Requirements under Petroleum Rules, 2002
Licensing is mandatory for handling, storage, and transport depending on the class and quantity of petroleum.
Import & Storage Licenses
Class | Storage Without License (Max Quantity) | License Required |
A | 300 Litres (Non-Residential Premises) | Yes |
B | 2,500 Litres (Non-Residential) | Yes |
C | 45,000 Litres (Non-Residential) | Yes |
Petroleum Licensing Forms
Form Number | Purpose / Use |
FORM I | Declaration to be made by the Master or agent of ship carrying petroleum by sea before entering port or by the importer or his agent before importing petroleum by land |
FORM III | Licence for the carriage of Petroleum in bulk by water. |
FORM VII | Application for the grant/amendment/renewal/transfer of licence to transport Petroleum Class A and Class B in bulk on land by mechanically propelled vehicles. |
FORM VIII | Application for a grant/amendment/renewal of a licence to transport petroleum Class A/B in bulk on land for fuelling of aircraft, heavy vehicles/ machineries and stationery equipment by a mechanically propelled vehicle viz. Refueller |
FORM IX | Application for a grant/amendment/renewal/transfer of a licence to import and store petroleum |
FORM X | Application for a grant/amendment/renewal of a licence to decant kerosene (petroleum Class B) from mechanically-propelled vehicles |
FORM XI | Licence to transport petroleum Class A or petroleum Class B in bulk on land by mechanically propelled vehicles. |
FORM XII | Licence to import and store Petroleum Class A in quantity not exceeding 300 litres in a storage shed or approved bin |
FORM XIII | Licence to import and store Petroleum Class B otherwise than in bulk in quantity not exceeding 25,000 litres. |
FORM XIV | Licence to store Petroleum in tank or tanks in connection with Pump outfit for fuelling Motor Conveyances |
FORM XV | Licence to Import and Store Petroleum in an Installation |
FORM XVI | Licence to import and store otherwise than in bulk petroleum Class A in quantities exceeding 300 litres or petroleum Class B, in quantities exceeding 25,000 litres or petroleum Class C in quantities exceeding 45,000 litres or petroleum Class A, together with any other class of petroleum in quantities exceeding 300 litres in all. |
FORM XVII | Licence to store petroleum Class A and Class B temporarily in quantities not exceeding 50,000 litres for refueling of aircrafts in connection with crop spraying and fighting forest fire only. |
FORM XVIII | Licence to Decant Kerosene (Petroleum Class B) From Mechanically-Propelled vehicle in Containers. |
FROM XIX | Licence to transport petroleum class a/b in bulk on land by mechanically propelled vehicles viz., refueller |
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