LPG Agency Business: You will earn this much every month from LPG agency, know the rules and cost of opening it

LPG Agency Business: The number of domestic LPG connections in the country has more than doubled in the last 10 years. As of July 1, 2025, there were 33.52 crore active domestic LPG connections in the country. Whereas in 2014 their number was only 14.52 crore

LPG distributorship is also one of the names in the business category with low cost and high income. In today’s era, you can earn a lot by taking a gas agency. Because in the last few years the number of LPG customers has increased continuously, especially under the Ujjwala Yojana, LPG connections have been delivered to crores of homes.

The number of domestic LPG connections in the country has more than doubled in the last 10 years. As of July 1, 2025, there were 33.52 crore active domestic LPG connections in the country. Whereas in 2014 their number was only 14.52 crore. In this episode, more than 10 crore connections have been given under the Pradhan Mantri Ujjwala Yojana (PMUY).

Three government companies give distributorship

Actually, you can earn good profits by opening a LPG cylinder distribution agency. However, for this you will also have to invest a huge amount. There are three government LPG companies in the country and they provide distributorship. The job of the LPG agency is to deliver LPG cylinders to the customers and then take back the empty cylinders for refill.

Mainly three government oil companies (Oil Marketing Companies – OMCs) provide distributorship in India. Indian Oil Corporation Ltd provides distributorship for Indane Gas. Bharat Petroleum provides distributorship for Bharat Gas and Hindustan Petroleum provides distributorship for HP Gas.

How to apply?

According to the website of Hindustan Petroleum, companies invite applications online or offline. After applying, the candidate is interviewed. In this, marks are given on several parameters. On this basis, the candidate is evaluated. After this, the result of the interview is released. If your name comes, then the companies verify the information given by you and allot the gas agency. If there are many eligible candidates in an area, then the dealership is selected through lucky draw.

Field Verification

Permission for distribution and operation is given in metro cities, rural areas and municipalities. If you want to take agency for distribution of domestic LPG cylinders, then you will not be able to distribute cylinders weighing more than 14.2 kg. Before getting the license for distribution agency, your credentials will be field verified. A committee of OMC officials will check your documents and the land on which you want to open a distribution agency for LPG cylinders.

Land verification means that the place where you want to open the agency, there must be a road for the vehicle to reach in every season. A warehouse will be built on the land to store LPG cylinders. If the land is in your name then it is fine, if you are taking it on rent then you will have to take it on lease for at least 15 years. If you are selected for granting the license, then you will have to build the warehouse yourself.

They are given priority

As per the standards set by the government for LPG agency, there is 50 percent reservation for general category candidates. After this, there is also reservation for people of Scheduled Caste, Scheduled Tribe category. Freedom fighters, ex-servicemen, armed forces, police service, national players and socially disabled people are also given priority. Online application form has to be submitted on https://www.lpgvitarakchayan.in/ or the website of the concerned company (iocl.com, myhpgas.in, my.ebharatgas.com).

Notification is issued in newspapers for application for LPG distributorship. Information about the notification is also available on the (https://www.lpgvitarakchayan.in) portal.

How much fee is charged for application?

To get distributorship, it is necessary to be an Indian citizen. Also, the applicant for LPG agency must be 10th pass. The age should be between 21 years to 60 years. Apart from this, no member of the family should work in an oil marketing company. The maximum fee for applying for a gas agency is Rs 10,000. This amount is not refundable.

How much will be the total cost?

The investment to start a gas agency depends on the area, company, and infrastructure. Initially, an investment of Rs 15 to 30 lakh may have to be made. This includes security deposit (depending on the company), warehouse and office construction or rent, computer, printer, weighing machine. Apart from this, there should be a vehicle for cylinder delivery. Many banks and financial institutions provide loans for gas agency, which can reduce the burden of initial investment.

How much can be earned?

Just like petrol and diesel, the distributor gets commission on LPG cylinders. The dealer currently gets a commission of about ₹73.08 on a 14.2 kg cylinder. In which cylinder delivery charge of Rs 33.43 is also included. The dealer commission on 5 kg cylinder is ₹36.54, which includes ₹16.72 distribution charge. Apart from this, income is also earned by selling gas stove, regulator and gas supply pipe. Also, the distributor gets commission on issuing new connections.

By opening an LPG distribution agency, you can earn at least 50 thousand rupees a month. Actually, the income depends on how many cylinders a distributor supplies in a month.

For example, if a distributor supplies 3000 cylinders in a month, and gets a commission of Rs 73 per cylinder, then the monthly income is (3,000 × ₹73 = ₹2,19,000). Out of this, the delivery charge is around 1 lakh rupees. If we deduct the expenses of Rs 1.5 lakh from the total income, then also we can easily earn around 70 thousand rupees in a month. Apart from this, commission on new connection, selling gas stove, regulator and gas supply pipe generates separate income.

But most of the LPG distributors in the country, especially in urban areas, deliver up to 500 cylinders daily. That means they deliver around 15000 cylinders in a month. According to this, the income can be (15000 × ₹73= ₹10,95,000) in a month. In which even after deducting more than half of the expenses, we can earn up to 4 to 5 lakh rupees in a month. Now you can guess how much money can be earned in this business as compared to the cost. It is worth noting that the demand for LPG is increasing at the rate of 5-6% in India. This is likely to stabilize and increase the income of the agency.

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