No licence needed for transport or storage of limited quantities of petroleum Class B or petroleum Class C
Section 7 of the Petroleum Act, 1934 deals with no licence needed for transport or storage of limited quantities of petroleum Class B or petroleum Class C. Notwithstanding anything contained in this Chapter, a person need not obtain a licence for the transport or storage of-- (i) petroleum Class B if the total quantity in his possession at any one place does not exceed two thousand and five hundred litres and none of it is contained in a receptacle exc The Act came into force on 30 Mar 1937.
1[7. No licence needed for transport or storage of limited quantities of petroleum Class B or petroleum Class C.--Notwithstanding anything contained in this Chapter, a person need not obtain a licence for the transport or storage of--
(i) petroleum Class B if the total quantity in his possession at any one place does not exceed two thousand and five hundred litres and none of it is contained in a receptacle exceeding one thousand litres in capacity; or
(ii) petroleum Class C if the total quantity in his possession at any one place does not exceed forty-five thousand litres and such petroleum is transported or stored in accordance with the rules made under section 4.]
Section 7, The Petroleum Act, 1934 (Act 30 of 1934).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Baikuntha Nath Choudhury v. State of Odisha
Court's Decision & Legal Precedent
Orissa HC, while sustaining EC Act conviction for unlicensed HSD dealing, expressly cited Petroleum Act s.7 that 160L HSD was within the non-licensable quantitative limit (<250L Class B), treating that as a mitigating factor supporting Probation of Offenders Act relief on sentence. DATE VERIFIED Final Order 2025-07-31 (order-4.pdf).
On this section: s.7 No licence needed for limited Class B/C quantities — court treated quantity below the s.7 non-licensable threshold as mitigating on sentence (conviction under EC Act left intact).
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Poulos M.O. v. The Controller of Explosives/Deputy Chief Controller of Explosives & Ors.
Court's Decision & Legal Precedent
Kerala HC treated the petitioner’s prayer for search under Petroleum Act s.13 (with Rules) as the statutory inspection pathway and disposed the PIL after PESO showed District Magistrates had been directed to inspect unlicensed storages under the Act/Rules. DATE VERIFIED Final Order 2023-03-17 (order-2.pdf).
On this section: s.7 limited-quantity licence exemptions — court recorded and proceeded on the s.7 Class B/C quantitative carve-outs as part of the licensing scheme.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
1 instrument names this provision in its title or its text without being made under it.
Questions about Section 7
What have the courts held on Section 7 of the Petroleum Act?
Baikuntha Nath Choudhury v. State of Odisha (31 Jul 2025) is the leading judgment on this section among those set out below: s.7 No licence needed for limited Class B/C quantities — court treated quantity below the s.7 non-licensable threshold as mitigating on sentence (conviction under EC Act left intact). Another 1 judgment on this section is set out below. They run from 2023 to 2025.
How do I find court cases under Section 7 of the Petroleum Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Petroleum Act 1934 7, section 7 Petroleum Act 1934, section 7 of the Petroleum Act. People searching for it also type petroleum act 1934 section 7. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 2 reported judgments on this section are set out on this page, beginning with Baikuntha Nath Choudhury v. State of Odisha (31 Jul 2025).
What should I read with Section 7 of the Petroleum Act, and has it changed?
Its own text turns on section 4 (Rules for the import, transport and storage of petroleum), so none of them can safely be read on its own. One instrument names it without being made under it, most recently The Petroleum (Amendment) Rules, 2024 (2024).
When did Section 7 of the Petroleum Act come into force?
Section 7 of the Petroleum Act, cited as Petroleum Act 1934 7, came into force on 30 Mar 1937, having been enacted on 06 Sep 1934. It is in force as at the date shown on this page.
Other sections of this Act
- 23. General penalty for offences under this Act348 words
- 4. Rules for the import, transport and storage of petroleum317 words
- 21. Power to make rules regarding tests258 words
- 2. Definitions254 words
- 29. Provisions relating to rules227 words
- 9. Exemptions for motor conveyances and stationary engines221 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 16 Oct 2026. This page is not a substitute for legal advice.