Difference Between Form L and Form M Licence in Pakistan

Form L and Form M are both DPL licences for storing petroleum products, but they cover very different sites. This guide explains the difference between Form L and Form M in Pakistan: what each one licenses, what you must build, the fees, the role of OGRA and how to choose the right one before you spend on land.

Quick Answer

Difference Between Form L and Form M at a Glance

The short answer: Form L is for bulk storage in fixed tanks; Form M is for storage in drums, cans and packages inside a godown. Both are issued by the National Explosives and Petroleum Safety Agency (NEPSA), the new name of the Department of Explosives, under the Petroleum Rules 1937 made under the Petroleum Act 1934. The way the product is held, not the product itself, decides the form. Diesel in a 50,000 litre tank needs Form L; the same diesel in 200 litre drums needs Form M.

	Form L	Form M
What it licenses	Bulk storage in fixed tanks, above ground or underground	Storage in drums, cans, bottles and sealed packages
Type of premises	Depot, tank farm or “installation”	Godown or storage shed
Typical users	Oil company depots, factories with bulk tanks, power plants	Chemical traders, lubricant dealers, warehouses
Main structure	Tanks, bund walls, pump house, loading gantry	C.C. block godown with sump and ventilators
Fire protection	Fire water, two fire pumps, hydrants and foam	Extinguishers, sand buckets, hydrant where required
Licence fee	Rs. 30,000 per product up to 500,000 litres (Rs. 80,000 above). 3 products = Rs. 90,000	Rs. 25,000 fixed, covering all products in the godown
OGRA involvement	Yes, for oil marketing and storage companies	Usually none
Rented premises	Possible, but tanks are a long-term build	Accepted with a registered tenancy
Licensing authority	NEPSA (formerly Department of Explosives)	NEPSA (formerly Department of Explosives)

Fees are revised from time to time, so confirm the current amount before paying. Retail sale to vehicles from a dispenser is neither of these: that is a Form K petrol pump licence.

When You Need Form L

Bulk Storage

You store product in fixed tanks above or below ground
You run an oil company depot or a storage terminal
Your factory keeps furnace oil, diesel or solvent in bulk tanks
Your power plant stores fuel on site
You receive product by tanker and unload into tanks
You store petroleum-based chemicals in bulk
You plan to supply other businesses from your tanks

When You Need Form M

Packed Storage

You store product in drums, cans, bottles or packages
You trade lubricants, solvents, thinners or other chemicals
You run a warehouse for packed petroleum products
You keep stock for a factory in drums rather than tanks
You want to rent a ready godown instead of building
You need a licence quickly with lower construction cost
Your stock moves in and out in sealed containers

What You Build for Form L

Depot Construction

Steel or approved tanks built to API standards and NFPA 30
Bund wall that holds the full contents of the largest tank
Fire water for at least 2 hours with two fire pumps
Hydrants every 50 to 100 m and foam for fixed-roof tanks
Boundary wall 7 ft high with 3 ft of barbed wire
Tanker loading point at least 25 ft from tanks and boundary
Flameproof wiring and earthing on every tank

What You Build for Form M

Godown Construction

Plot of at least 100 ft front by 160 ft depth
Godown of about 40 ft by 60 ft in the middle of the plot
40 ft of clear open space on all four sides
Walls of C.C. blocks with RCC columns, no wood
Concrete floor with a 2 ft deep sump for spills
Ventilators with copper wire gauze, doors opening outward
No gas main or transformer within 50 ft

Which Licence Do You Need? Step by Step

Step 1: List every product you will store and its class (A, B or C)
Step 2: Decide how it will be held: fixed tanks or sealed containers
Step 3: Fixed tanks point to Form L; drums and packages point to Form M
Step 4: Selling fuel to vehicles from a dispenser needs Form K instead

Step 5: Check the land: Form M needs about 100 × 160 ft; a depot needs more
Step 6: Oil marketing companies plan the OGRA licence alongside Form L
Step 7: Get the District Authority NOC and drawings for the right form
Step 8: Apply on the NEPSA e-portal and renew every year before 1 December

Documents, Fees and Time Compared

Packed Storage Means Form M

Form M in Real Life

Both licences start the same way: an application on the NEPSA e-portal, a treasury challan for the fee, a District Authority (Deputy Commissioner) NOC with an attested site plan, ownership or tenancy papers, CNIC or company documents, and drawings of the premises. After that the two files move very differently.

Form M needs a storage plan of the godown. Once NEPSA approves it, you build, an engineer certifies the work and an officer inspects. Because the building is simple, Form M is usually the faster licence. A ready DPL godown on rent can shorten it further.
Form L needs engineered drawings of tanks, bunds, roads and the fire-fighting system, tank test certificates, and often an environmental approval from the provincial EPA. Oil marketing companies also need OGRA licences. Construction and testing make it the longer and costlier licence.

The fee difference that surprises most clients: the Form M fee of Rs. 25,000 is one fixed amount, and it covers every petroleum product and chemical stored in the godown, whether that is one product or ten. The Form L fee is charged per product. At Rs. 30,000 per product, a depot holding three products, for example diesel, furnace oil and a solvent, pays Rs. 90,000 (3 × Rs. 30,000). Above 500,000 litres the rate rises to Rs. 80,000 per product, so the same three products would cost Rs. 240,000. Count your products before choosing between bulk tanks and drums.

For the full fee list see our Petroleum Rules 1937 guide, and for a first budget try the DPL cost estimator. The detailed building rules are in our Form L depot construction requirements and Form M godown construction requirements guides.

Common Mistakes When Choosing Between Form L and Form M

Choosing the wrong form wastes months, because drawings and NOCs are prepared for one form only. These are the mistakes we see most often:

Applying for Form M with a tank on site. Even one fixed bulk tank, above or below ground, brings the site under Form L rules.
Buying land before deciding the form. A plot that suits a godown may be too small for tanks, bunds and a ring road.
Assuming a rented godown cannot be licensed. Form M accepts rented premises with a registered tenancy agreement.
Thinking Form L allows retail sale. Selling fuel to vehicles from a dispenser needs a Form K petrol pump licence.
Ignoring OGRA. An oil marketing company with a Form L depot also needs OGRA licences; a trader with Form M usually does not.
Building before approval. Under both forms, construction starts only after NEPSA approves the plan in writing.

If you are still unsure, compare all the forms on our licence forms and purpose of grant page.

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Common Questions

Form L vs Form M: FAQs

Quick answers to what clients ask us when deciding between the two licences.

What is the main difference between Form L and Form M?

Form L licenses bulk storage of petroleum products in fixed tanks, such as a depot or a factory tank farm. Form M licenses storage in drums, cans and packages inside a godown. Both are granted by NEPSA (formerly the Department of Explosives) under the Petroleum Rules 1937.

Which licence is cheaper, Form L or Form M?

Form M is usually cheaper. Its licence fee is Rs. 25,000 fixed and covers all the products and chemicals in the godown. Form L is charged per product: Rs. 30,000 for each product up to 500,000 litres, so three products cost Rs. 90,000, and Rs. 80,000 per product above that. Construction is the other big difference, because a godown costs far less to build than tanks, bunds and a fire-fighting system.

Can I store chemicals under a Form M licence?

Yes. Form M covers petroleum products and flammable petroleum-based chemicals, such as solvents and thinners, kept in drums, cans and sealed packages. If the same chemicals are stored in a fixed bulk tank, Form L applies instead.

Do I need an OGRA licence for Form M?

Usually not. OGRA licenses oil marketing companies and their storage under the Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules 2016. A trader or warehouse storing packed products needs the NEPSA Form M licence, not an OGRA licence.

Can one site have both bulk tanks and a drum godown?

Yes, as long as each storage area meets its own rules and both are shown on the approved plans. Tanks follow the Form L rules and the godown follows the Form M rules. We check in advance whether your site needs one licence or two.

If I start with Form M, can I add tanks later?

Not under the same Form M licence. Installing a fixed bulk tank needs fresh drawings, NEPSA approval and a Form L licence for that tank. Plan the site layout early so there is space for bunds, roads and fire systems if you expect to grow.