LPG Business – The demand for LPG i.e. cooking gas is increasing rapidly in the country and with this, the business of gas agency has also become very profitable. Especially under the Pradhan Mantri Ujjwala Yojana (PMUY),free connections have been given to crores of families in the last few years. Due to this, the number of LPG customers has increased from 14.52 crores in 2014 to 33.52 crores in 2025. In such a situation, its demand in India is continuously increasing. In such a situation, LPG distributorship (Gas Agency) has become an excellent business option.
In today’s article, let us know how much money you can earn from an LPG agency and how much commission you can get on a cylinder. Along with all these things, know how to start an LPG gas cylinder agency.
From which companies do you get gas agency?
There are three government oil companies that offer LPG dealerships in India:
Indian Oil – Indane Gas
Bharat Petroleum – Bharat Gas
Hindustan Petroleum – HP Gas
What is the need for land and infrastructure?
There should be land connected to a road so that vehicles can access it in all seasons.
It is necessary to build a warehouse to store cylinders.
The land should be your own or on a 15 year lease.
Field verification and document checking is done by OMC officials.
Who can apply?
- Must be an Indian citizen.
- The applicant must have at least passed 10th.
- Age between 21 to 60 years
- To start an agency, an application fee of Rs 10, 000 (non-refundable) has to be paid.
- No member of the family should be employed in OMC.
- Reservation and priority candidates i.e. SC/ST, freedom fighters, ex-servicemen and national players etc will get special facilities to start this agency.
How much does it cost?
Initial investment of Rs 15 lakh to Rs 30 lakh (security deposit, warehouse, office, vehicle, equipment). Many banks and NBFCs of the country also provide loans for agencies.
How much will you earn?
A commission of Rs 73.08 is available on a 14.2 kg cylinder. A commission of Rs 36.54 is available on 5 kg cylinder. There is separate income by selling stove, regulator, pipe etc. Minimum income of 50 thousand to 70 thousand rupees can be earned per month. If a distributor supplies 15, 000 cylinders in a month, he can earn up to Rs 4 to 5 lakh.
How to apply?
Application for gas agency can be done online. For this you have to visit the official website:
https://www.lpgvitarakchayan.in
www.iocl.com
www.myhpgas.in
my.ebharatgas.com