Commercial LPG cylinders are widely used in restaurants, hotels, sweet shops, canteens and other businesses where cooking or heating is required on a regular basis. However, businesses that keep multiple cylinders on their premises need to pay attention not only to their gas supply but also to storage and fire-safety requirements.

Keeping a few cylinders for routine commercial use and storing a larger quantity of LPG may be treated differently under applicable safety requirements. According to the information provided, businesses planning to store LPG beyond the prescribed limit may require additional permission, including a storage licence and approvals from relevant local authorities.

So, can a shop or restaurant simply keep more than five commercial LPG cylinders? Here is what business owners should know.

How Much LPG Can Be Stored Without Additional Licensing?

According to the information provided, storage of LPG up to around 100 kg—roughly equivalent to about five commercial cylinders—is generally cited as the threshold to consider.

If a business needs to store LPG beyond the applicable permitted quantity, additional approvals or a storage licence may become necessary.

However, business owners should focus on the total quantity of LPG being stored rather than assuming that "five cylinders" is a universal rule in every situation. Cylinder capacity can vary, and licensing requirements may also depend on the nature and configuration of the premises.

Therefore, businesses planning substantial LPG storage should confirm the applicable requirement with the competent authorities instead of relying only on the number of cylinders.

When Could a PESO Storage Licence Be Required?

For LPG storage above the applicable exempted or permitted limit, a licence from the Petroleum and Explosives Safety Organisation (PESO) may be required.

PESO deals with safety regulations covering petroleum products, compressed gases and other hazardous substances. Since LPG is highly inflammable, its storage in larger quantities is subject to safety controls.

Apart from a PESO-related licence, a commercial establishment may also need permissions or clearances from the local administration and fire department, depending on the premises and applicable local rules.

Business owners should obtain the required approvals before increasing their LPG storage capacity.

What Documents May Be Needed for LPG Storage Approval?

Businesses applying for permission to store a larger quantity of LPG may have to provide documents relating to both the establishment and the proposed storage area.

The requirements can vary, but the documents mentioned in the source information include a site and layout plan showing the LPG storage area, proof of ownership of the premises and a valid rent or lease agreement if the property is rented.

Business-related documents such as PAN, GST records and a valid trade licence may also be required.

Depending on the applicable process, the applicant may additionally need a Fire NOC and approvals from the district administration or police authorities.

Since requirements can differ according to the type of business and location, applicants should check the latest document list with the relevant authority before filing an application.

Your LPG Storage Area May Be Inspected

Submitting documents may not be the final stage of the licensing process.

Officials may inspect the premises before permission is granted. The purpose of such an inspection is to determine whether the proposed LPG storage arrangement meets the required safety standards.

The inspection may cover the location where cylinders are stored, ventilation arrangements, fire-safety measures and the establishment's preparedness for an emergency.

If deficiencies are found, the business may need to make the required changes before the licensing process can move forward.

Why Is Proper Ventilation Important?

LPG requires careful handling because an uncontrolled leak can create a serious fire and safety hazard.

A commercial establishment storing multiple cylinders therefore needs to ensure that the storage area complies with the prescribed safety conditions.

Proper ventilation is particularly important because gas should not be allowed to accumulate in an enclosed space in the event of leakage.

Businesses should also follow the cylinder supplier's safety instructions and ensure that installations and connections are handled by authorised personnel.

Why Could a Fire NOC Be Necessary?

A storage licence is not necessarily the only approval a commercial establishment may need.

Depending on the quantity of LPG, building type, nature of the business and local regulations, a Fire No Objection Certificate (NOC) may also be required.

The local fire department may inspect the premises and examine whether appropriate fire-safety arrangements are in place.

This could include checking the LPG storage location and other emergency-safety provisions applicable to the establishment.

A Fire NOC should therefore not be viewed merely as paperwork. The objective is to reduce risks to employees, customers and surrounding properties.

What About a Trade Licence?

Restaurants, hotels, shops and other commercial establishments may also require a trade licence from the relevant municipal or local authority.

The exact requirement depends on the nature of the business and local regulations.

A trade licence and an LPG storage approval serve different purposes. Having permission to operate a business does not automatically mean that the establishment is authorised to store any quantity of LPG.

Similarly, obtaining an LPG-related approval may not replace other licences required to operate the business.

Don't Stock Extra Cylinders Without Checking the Rules

Businesses often keep additional LPG cylinders to avoid disruption during busy periods. While having backup fuel can be convenient, storing cylinders beyond the permitted quantity without checking the applicable safety and licensing requirements can create regulatory as well as safety problems.

If your restaurant, hotel, sweet shop, canteen or other establishment needs to keep more than the normal quantity of commercial LPG, first determine the total LPG quantity that will be stored.

Then check whether a PESO storage licence, Fire NOC, local administrative permission or other approval applies to your establishment.

The important point is that the commonly cited figure of around five cylinders or 100 kg should not be treated as permission to ignore other safety conditions. Cylinder size, total LPG quantity, premises and applicable regulations all matter.

Before expanding LPG storage at a commercial property, confirming the current requirements with PESO, the local fire department and other competent authorities can help the business remain compliant while reducing safety risks.