How a petrol pump works: tanks, dispensers and nozzles

Short answer

At a petrol pump, fuel from a tanker goes into gas-tight tanks buried outside any building, a pump draws it out through an underground pipe, and a dispenser measures it through a hose and nozzle into the vehicle Petroleum Rules 2002, Form XIV, conditions 1, 2, 12 and 13. Different bodies check different parts: PESO licenses the tanks and approves the electrical parts, the State Legal Metrology department verifies and seals the meter, and the public sector oil companies' guideline makes the dealer check the seals and every nozzle each day PESO SOP on Petroleum Rules 2002, rule 102 LM (General) Rules 2011, rule 27 MDG 2024, 1.4.2.

MDG Services makes Dealer Kavach, an app for petrol pump dealers, so this page comes from the maker of a product it may mention. It is general information, not legal, tax or financial advice. Rules, fees and guidelines change and differ by oil company and state: every fact here names its source and the date we checked it, so confirm it with the oil company or the authority before you act. We do not sell, allot or arrange dealerships or licences.

Facts checked on 9 November 2026. Published by MDG Services on 9 November 2026.

Fuel reaches your vehicle in three steps. The tanker empties into a buried tank, a pump draws the fuel out, and the dispenser measures it into the vehicle. Each part has its own rules and its own checker, as on 9 November 2026.

How does one fill work, from tanker to vehicle?

Steps 1 and 5 follow the public sector oil companies' guideline (MDG 2024); the rest follow the licence conditions.

Before unloading, the dealer checks the tanker's seals and the product, and stops sales from the receiving tank until it is unloaded MDG 2024, 1.2.
The fuel enters the tank through a close-coupled, electrically continuous hose Petroleum Rules 2002, Form XIV, condition 9.
The tank is gas-tight and outside any building. Its fill and dip pipes go nearly to the bottom, and it has its own vent pipe at least 4 metres high Petroleum Rules 2002, Form XIV, conditions 1, 2, 4 and 5.
A pump draws the fuel out. The pipe between tank and pump runs underground Petroleum Rules 2002, Form XIV, condition 12.
The dispenser's meter counts the litres. Before each delivery it goes back to zero, and the attendant shows the zero to the customer MDG 2024, 1.4.2.
The fuel flows through a sound hose with a secure tap and nozzle into the vehicle Petroleum Rules 2002, Form XIV, condition 13. The engine must be off, and nobody in or with the vehicle may smoke Petroleum Rules 2002, Form XIV, condition 15.

What are the parts, and who checks each one?

Part	What it does	Who checks it
Buried tank	Holds the fuel; water-pressure tested before first use and after a major repair Petroleum Rules 2002, rule 126	PESO (tanks)
Dispenser's electrics	Motor, switches and wiring need the Chief Controller of Explosives' approval PESO SOP on Petroleum Rules 2002, rule 102	PESO
Meter	Counts litres; re-verified every 24 months LM (General) Rules 2011, rule 27 G.S.R. 905(E), 18 Dec 2025	State Legal Metrology (measurement)
Hose and nozzle	New pumps: automatic cut-off nozzle and a breakaway on each hose CPCB new pump guidelines 7 Jan 2020, A.4 and A.5	Oil company, PESO
Fire gear	At least two tins or drums of dry sand and two portable extinguishers for each pump Petroleum Rules 2002, Form XIV, condition 20	PESO (safety)
Vapour recovery	Catches petrol vapour at some pumps	CPCB, oil company (vapour recovery)

Do petrol and diesel nozzles differ in colour or size?

We did not find an Indian rule or standard that fixes nozzle colours or sizes for petrol and diesel. The public sector oil companies' guideline asks the dealer to display the product name on each nozzle of a multi-product dispenser MDG 2024, 5.1.17. For nozzle specifications, ask your oil company.

Where this comes from

Petroleum Rules 2002 (English), PESO: Form XIV licence conditions and rule 126.
PESO SOP on approvals under the Petroleum Rules 2002: approval of electrical apparatus.
Marketing Discipline Guidelines 2024, Bharat Petroleum: the public sector oil companies' guideline for their dealers.
Legal Metrology Acts and Rules, Department of Consumer Affairs: General Rules 2011 and amendments.
CPCB guidelines of 7 January 2020, as filed in the National Green Tribunal: nozzle and hose features for new pumps.

In this section

Legal Metrology verification of petrol pump dispensersHow a petrol or diesel dispenser is verified, stamped and re-checked under the Legal Metrology rules: who does it, how often, the error allowed and the 5-litre test.

Vapour recovery system at petrol pumps: where it is requiredWhat a vapour recovery system (VRS) does at a petrol pump, and where India requires it, by CPCB direction, National Green Tribunal order and city size.

Underground tanks at a petrol pump: how they are built and testedHow a petrol pump's buried tanks are fitted, tested and checked for leaks under the Petroleum Rules 2002 and CPCB guidelines, with the vent, fill and dip pipes.

Questions people ask

01How does a petrol pump work?

Fuel is unloaded from a tanker into a buried tank, drawn out by a pump through an underground pipe, and measured by the dispenser as it flows through a hose and nozzle into the vehicle Petroleum Rules 2002, Form XIV, conditions 9, 12 and 13.

02How is petrol measured at a petrol pump?

The dispenser's meter counts the litres. A Legal Metrology Officer verifies and stamps it, and the table figure for the error allowed on a delivery of two litres or more is 0.5 per cent, and the same Schedule sets a minimum error figure for small deliveries LM (General) Rules 2011, Eighth Schedule Part IV.

03What are petrol pump nozzle sizes and colour codes?

We did not find an Indian rule or standard that fixes nozzle colours or sizes for petrol and diesel. Public sector oil company guidelines ask for the product name on each nozzle of a multi-product dispenser MDG 2024, 5.1.17.

04Where is petrol stored at a petrol pump?

In gas-tight tanks buried outside any building, each with its own vent pipe to the open air, at least 4 metres high Petroleum Rules 2002, Form XIV, conditions 1, 2 and 5.

Petrol pump safety rules: fire, earthing and daily checksThe safety rules in a PESO petrol pump licence, earthing limits, equipment CPCB asks of new outlets and how fire NOC works, checked on 9 November 2026.

About Dealer Kavach (advertisement)

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