In today’s time, when inflation is constantly increasing, a means of stable income has become everyone’s priority. If you want a business in which the government is supported and the risk is almost negligible, then an LPG gas agency is a golden opportunity for you. LPG is a necessity that has become mandatory in every household. Since the Pradhan Mantri Ujjwala Yojana, the number of gas consumers in the country has almost doubled. As of July 1, 2025, there were more than 33.52 crore active domestic LPG connections in India, which shows a huge and ever-growing market for this business.
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Earning model
The main profit of a gas agency is determined by the commission received on every cylinder. The agency gets a total commission of Rs 73.08 on a 14.2 kg domestic cylinder, which includes an installation fee of Rs 39.65 and a delivery fee of Rs 33.43. At the same time, the commission on a 5 kg cylinder is Rs 36.54. Apart from this, issuing new connections, selling gas stoves and other appliances, as well as the supply of commercial cylinders, also generate good income. An average agency sells thousands of cylinders every month, ensuring stable and huge profits.
How much investment will be required?
The initial investment to start a gas agency can be between Rs 15 lakh to Rs 30 lakh. This expense depends on the type of your area (rural or urban) and the dealership category. This includes paying a security deposit to the oil company, building a warehouse and office, buying delivery vehicles, office setup like computers and billing software, and spending on security arrangements. The good thing is that many government and private banks easily provide business loans for this business.
Who can become a dealer?
There are some conditions to get a dealership. The applicant should be an Indian citizen and their age should be between 21 to 60 years. Minimum educational qualification of 10th pass is mandatory. No member of the family should be an employee in any oil marketing company. It is also important to be physically fit. The government gives preference to Scheduled Castes/Tribes, freedom fighters, ex-servicemen, police service, and national-level sportspersons to promote social equality.
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Application and Selection Process
The process of getting a gas agency has now become completely transparent and online. Indane (IOCL), Bharat Gas (BPCL), and HP Gas (HPCL) release dealership information on their websites and newspapers from time to time. Details of all these are available on the lpgvitarakchayan. in portal. To apply, the candidate has to register online and fill out the form, and submit the fee along with the required documents. If many eligible candidates apply for a place, then the selection is done through a computerized lucky draw. After checking the documents of the selected candidate, a Letter of Intent is issued by the company, and with this, the process of setting up a gas agency starts.