Why do fuel stations require special permissions?

Fuel stations involve the storage, handling, and dispensing of highly flammable substances, making them subject to strict regulatory oversight. Special permissions are necessary to ensure that fuel stations meet safety standards, environmental regulations, land-use norms, and operational compliance set by various government departments.

1. Handling of Hazardous and Inflammable Substances

• Fuel stations store petrol, diesel, and sometimes LPG or CNG, all of which are classified as hazardous materials under the Explosives Act, 1884 and the Petroleum Act, 1934.
  
• Special permissions are required to:
  
  • Ensure safe storage in underground tanks
    
  • Prevent leakage, vaporization, or explosion risks
    
  • Control fire hazards and operational emergencies
    

2. License from Petroleum and Explosives Safety Organization (PESO)

• Fuel stations must obtain licenses from PESO for:
  
  • Installation of fuel tanks and dispensers
    
  • Operation and maintenance of fueling systems
    
  • Layout approval of underground and above-ground installations
    
• PESO checks compliance with the Static and Mobile Pressure Vessels (Unfired) Rules and Petroleum Rules.
  

3. Environmental Clearance and Pollution Control

• Stations require approval from the State Pollution Control Board (SPCB), which grants:
  
  • Consent to Establish (CTE)
    
  • Consent to Operate (CTO)
    
• Fuel stations may impact groundwater, soil, and air quality due to fuel spills, evaporation, and vehicular emissions.
  
• Installation of vapour recovery systems, oil-water separators, and drainage filters is often mandatory.
  

4. Zoning and Land Use Approval

• The land selected must be zoned for fuel dispensing or commercial use under the city’s Master Plan or Urban Development Regulations.
  
• Permissions are required from:
  
  • Town and Country Planning Department
    
  • Municipal Corporation or Gram Panchayat
    
• Distance restrictions may apply near schools, hospitals, residential areas, or protected zones.
  

5. Fire Safety Approval

• A No Objection Certificate (NOC) from the Fire Department is mandatory before commissioning.
  
• This ensures the presence of:
  
  • Fire extinguishers, sand buckets, fire alarms
    
  • Emergency exit signage
    
  • Firefighting infrastructure like hydrants and sprinklers (for larger outlets)
    

6. Clearances from District Collectorate and Local Authorities

• Depending on the location and plot ownership, land conversion and land allotment permissions may be needed from:
  
  • District Collector or Tehsildar
    
  • Revenue Department
    
• For government-allocated or highway-fronting plots, permission may be sought from State PWD or NHAI.
  

7. Approval from Oil Marketing Companies (OMCs)

• For franchisees of IOCL, BPCL, HPCL, or private players like Reliance or Nayara, landowners must:
  
  • Participate in dealer selection and technical inspection
    
  • Comply with OMC-prescribed design, branding, and safety standards
    
  • Get vetting for approach roads, plot size, and frontage
    

8. Traffic and Highway Access Permissions

• If the fuel station is planned along a national or state highway, permissions are required from:
  
  • National Highways Authority of India (NHAI)
    
  • State Public Works Department (PWD)
    
• This includes:
  
  • Approval for entry and exit points
    
  • Sufficient setbacks and parking space
    
  • Compliance with road safety and signage norms
    

9. Utility and Infrastructure Clearances

• Fuel stations also require:
  
  • Electricity load sanction for pumps and lighting
    
  • Water connection for cleaning and restrooms
    
  • Sewage system approvals for public sanitation
    

10. Commercial Trade License and Shop Establishment Registration

• Before commencing retail operations, the station must obtain:
  
  • Trade license from the local municipal body
    
  • Registration under the Shops and Establishments Act
    
  • Tax registrations such as GST, if applicable for other on-site services like mini marts or food counters