The Indian government has overhauled fuel regulations since 2019 to permit doorstep diesel delivery for eligible B2B customers. This move was not just about convenience; it was also aimed at curbing rampant pilferage, adulteration, and unauthorized resale, which plagued traditional diesel supply chains for industrial users.

In May 2019, the Ministry of Petroleum issued Gazette Notification No.384(E),  amending the Petroleum Rules, 2002, to explicitly allow delivery of diesel to stationary equipment, heavy machinery, and similar industrial uses at customer sites. Later in December 2019, the Motor Spirit & HSD (Control) Order, 2005 was similarly amended (G.S.R. 903 (E)) to authorize oil companies to sell diesel into PESO-certified mobile containers or tankers for “door-to-door” delivery to end-users. These changes, reinforced by further notifications in December 2019 and February 2020, created a lawful framework for mobile fueling. In practice, public and private oil companies (e.g., BPCL’s FuelKart) now deploy mobile diesel dispensers (MDUs) with valid PESO licenses to refill generators, cranes, and construction on-site, while ensuring adherence to safety and record-keeping protocols.

Regulatory Amendments Enabling Doorstep Delivery

Before 2019, retail diesel sales were confined to petrol pumps. The landmark amendments changed that. The 29 May 2019 Gazette (Petroleum (Amendment) Rules, 2019, GSR 384(E)) inserted new provisions in the Petroleum Rules allowing bulk fuel transport by “refueller” vehicles to fuel stationary/on-site equipment. Under these rules, an oil company can authorise a third-party operator to buy diesel in a certified mobile bowser, solely for resale by on-site delivery. The operator must then obtain all necessary approvals and licenses (PESO, local authorities, etc.). In parallel, an amendment to the MS/HSD Control Order (GSR 903(E), 10 Dec 2019) created Clause 3A, explicitly permitting door‑to‑door HSD delivery by authorised persons in certified tank-trucks. In short, these legal changes reversed earlier prohibitions, so that today “any person duly authorised by an oil company” can pick up diesel in a PESO-approved mobile dispenser and transport it to customer sites. (For context: subsequent amendments in Feb 2020 and 2021 further refined these rules, but the core “doorstep delivery” authority stems from the 2019 gazettes.)

Licensing Framework for Mobile Diesel Dispensers (MDUs)

In India, mobile diesel delivery is regulated under the Petroleum Rules administered by the Petroleum and Explosives Safety Organisation (PESO). Any company wishing to operate a diesel delivery bowser must first secure a license, specifically Form XIX, which is issued for mobile dispensers transporting Class B petroleum (diesel).

This isn’t just a paperwork exercise. It involves submission of detailed design and safety blueprints for the bowser, including the tank capacity, piping system, fire-fighting fittings, and operational safety mechanisms. The standard capacity for MDUs ranges from 3,000 to 6,000 litres. Diesel quantities above 2,500 litres require a valid transport and storage license under Form VIII.

Additional Site-Based Licensing

The Bowser license isn’t enough on its own. Operators must also ensure that the loading point (e.g., depot or petrol station) is licensed appropriately.

Mandatory Agreements

To ensure traceability and safety, PESO mandates operators to:

Sign an agreement with a recognized Oil Marketing Company (OMC).

Get a written undertaking from the customer (site occupier) declaring their usage intent.

Most importantly, the operator must declare that fuel is delivered only for on-site use by:

1. Stationary industrial machinery
2. Commercial generators
3. Construction equipment
4. Heavy-duty vehicles (trucks, loaders, buses)

Delivery to private cars, two-wheelers, or fuel cans is strictly prohibited under PESO’s updated 2022 guidelines. Violation of this can lead to license suspension, cancellation, or legal prosecution.

Compliance Inspections & Safety Protocols

PESO and local authorities conduct routine inspections, checking for:

1. Properly calibrated meters (with certified seals)
2. Functional fire extinguishers and emergency controls
3. Valid permits for pollution, mechanical fitness, and hazardous goods transport
4. Trained and certified drivers for dangerous goods
5. State Transport Departments also verify if:
6. Fuel tanks are securely mounted
7. Vehicles are structurally sound and roadworthy

Tech Mandates from OMCs

Oil Marketing Companies often add an extra layer of digital compliance:

1. GPS tracking of bowsers
2. Geo-fencing to ensure fuel is dispensed only at registered commercial addresses
3. Real-time reporting of delivery and dispensing data

Technical and Engineering Standards for Bowsers

PESO-approved bowsers must meet strict engineering standards. The tank is constructed of approved materials and is “certified” by a Competent Person under Petroleum Rules (see Rule 63). It must have safety valves, vents, and earthing provisions as specified in the Third Schedule of the Rules. In the field, MDUs are equipped with:

• Calibrated flow meters and dispensing pumps: The bowser’s meter must be sealed and calibrated by the Legal Metrology Department. Modern systems often include a preset cutoff to prevent overfill (a “jet sensor” or flow-stop feature). All nozzles are automatic shutoff types, ATEX/PESO-certified for flammable liquids.
• Fire safety fittings: Every mobile dispenser carries multiple fire extinguishers (e.g. 9–10 kg DCP units) positioned for quick access during fueling. Operators are trained in emergency response. The fueling area must be cordoned off with barricades or cones to maintain safe distances.
• Emergency shutdown and interlocks: The MDU must have emergency kill-switches (at the driver’s cabin, at the dispenser console, and on the handheld nozzle) so fueling can be stopped instantly if needed. An interlock prevents fuel from dispensing unless the vehicle is stationary (handbrake on, transmission in neutral).
• GPS tracking and geofencing: Although not detailed in PESO rules, industry practice (per PESO’s 2022 guidelines) is to fit a GPS device and geo-fence so that the bowser only dispenses within pre-approved zones. This ensures real-time traceability of each delivery.
• Public liability insurance: MDUs carry PL insurance covering hazards during delivery. Before fueling a site, operators must ensure the customer has an emergency response plan approved by local authorities.

Fuelbuddy, for example, emphasises that “our refuellers are designed and fabricated as per guidelines in the Petroleum Act and Rules by PESO”. In line with that, compliant MDUs integrate IoT solutions (real-time tank-level telemetry, digital receipt-keeping, etc.) so that “quality and quantity” are verifiable end-to-end. A preset meter and tamper-proof seals make sales pilfer-proof, while digital logs and GPS track each drop.

Eligible Customers and Usage Boundaries

Legally, doorstep diesel is meant only for non-retail use. As the official Press Release notes, the 2019 rule change allows diesel delivery “to stationery equipment, heavy machinery/ vehicles, etc.” – essentially industrial and commercial consumers. These customers must have onsite storage (even a small bunded tank) or equipment to be fueled.

By contrast, PESO emphatically forbids delivering fuel to the general public. A bowser cannot sell diesel to private cars, bikes, buses, or in jerry cans; doing so violates the Petroleum Rules. (This reflects a long-standing policy: road vehicles must fuel at public pumps; MDUs bridge only the “last mile” to businesses.) Deliveries must be to the “registered” customer location and should match a pre-authorised purchase order. The emphasis on geofencing and customer registration underlines that free-market street selling from tankers is not allowed.

Compliant vs. Non-Compliant Delivery: Risks and Penalties

Operating within the PESO framework is critical. A fully compliant fleet (licensed bowsers, OMC agreement) greatly reduces fire and spill risks and simplifies bookkeeping for regulators. By contrast, unauthorised fuel dispensing is illegal. Unlicensed sale or transport of diesel invites severe consequences under the Petroleum Act and the Essential Commodities Act. PESO can immediately suspend or cancel the bowser’s license for violations (e.g., fueling an ineligible vehicle) and refer the case to law enforcement. Oil companies themselves may blacklist offenders from future contracts. Financial penalties (and even prosecution) are substantial: selling an essential commodity outside approved channels is a cognizable offence.

In short, compliant delivery means safety and transparency: every liter is accounted for, equipment is up to standard, and operators follow an emergency plan. Non-compliance, by contrast, not only risks accidents but also legal action. Fuel-management heads and CFOs, therefore, view PESO licensing as an insurance policy and regulatory due diligence for their doorstep fueling operations.

FuelBuddy and the New Era of Diesel Delivery

To illustrate the new framework in action, consider FuelBuddy – one of India’s largest diesel at doorstep service platforms. FuelBuddy’s business model is built on strict PESO compliance. Its bowsers carry PESO-licensed DISPENSERS (refuellors) with IoT-enabled flow meters and GPS trackers. In its literature, FuelBuddy highlights that it provides “safe, PESO-compliant doorstep diesel delivery,” emphasising real-time tracking and digital invoices. By sourcing fuel only from authorised OMC depots and maintaining chain-of-custody records, FuelBuddy assures customers (and regulators) that each delivery is legal.

FuelBuddy’s website notes: “ Our refuellers are designed and fabricated as per guidelines in the Petroleum Act and Rules by PESO”. In practice, this means FuelBuddy’s MDUs carry all required safety gear (extinguishers, spill kits, fire pumps), and its operators are hazmat-trained. The platform’s software enforces the rules: only pre-registered sites can be refueled, and each order goes through a compliance checklist before dispatch. The result is a fast, smart supply of diesel that reduces risks compared to old-world practices.

By following the PESO rulebook, modern fuel-delivery services turn a regulatory challenge into a competitive advantage. For industrial customers, the benefits are clear: fuel on demand, without illegal intermediaries, and with full audit trails. In the B2B fuel space, this compliance-backed model is shaping a safer and more efficient energy supply chain, right to the customer’s doorstep.

Conclusion

The legalisation of doorstep diesel delivery post-2019 marks a pivotal shift in how India manages industrial fuel logistics. No longer bound by outdated supply chains or unsafe transport methods, businesses now have access to a robust, PESO-regulated framework that ensures efficiency, transparency, and above all, safety.

For companies like FuelBuddy, this evolution is more than just regulatory alignment; it’s a foundation for building trust. Every PESO-compliant bowser that reaches a customer’s doorstep is backed by engineering precision, legal approvals, and an unwavering commitment to operational integrity.

The future of diesel delivery in India is mobile, monitored, and meticulously compliant. And for every operations manager, CFO, or procurement officer wondering if doorstep diesel is worth it, the answer is clear: only if it’s PESO-approved.

Sources: Official amendments and guidelines (Petroleum Rules 2002 as amended, MS/HSD Control Orders) and industry documentation.

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