Gas Agency Business: If you’re thinking of starting your own business alongside your job, this news could be very important for you. A sufficient amount of capital is necessary to live a better life. You can earn a high income by opening an LPG gas agency business. After the government’s PM Ujjwala scheme, gas cylinders have reached every village. Along with this, the demand for LPG cylinders has also increased. Given the increasing consumption and prices, the gas agency business can provide profits for a long time.
Essential Conditions for Opening a Gas Agency
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The person applying for a gas agency must be a citizen of India. They must have passed at least the 10th grade from a recognised board. However, applicants from the freedom fighter category are given an exemption from this educational qualification. The applicant’s age should be between 21 and 60 years, while the freedom fighter category is also given relaxation in the age limit. Additionally, the applicant should not be an employee of any oil marketing company as of the application date.
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What Preparations are Necessary Before Applying?
Before starting a gas agency, it is very important to survey your area. You need to understand whether the area is urban, rural, or a remote area. It is also important to see which company’s LPG gas is in higher demand there. There are four categories of gas agencies: Urban, Rural, and Remote Area. The application process and costs are determined according to the category in which you want to obtain the agency.
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What will be the Total Cost?
Opening an LPG gas agency usually costs between Rs. 15 to 30 lakhs. This amount may increase depending on the area and the type of distributorship. This cost includes the warehouse, office, vehicles for cylinder delivery, necessary equipment, and security deposit. In some cases, companies also offer discounts on costs if there is a better location or delivery system.
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How Much Security Deposit is Required?
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The amount of the security deposit is determined according to the category and area. In urban areas, the deposit amount is ₹5 lakh for the General category, ₹4 lakh for OBC, and ₹3 lakh for SC/ST. The same amount applies to all categories in semi-urban (rural) areas. In rural areas, the deposit is ₹4 lakh for the General category, ₹3 lakh for OBC, and ₹2 lakh for SC/ST. The same deposit applies in remote areas as well. The selected applicant has to deposit 10% of the total deposit initially, after which the documents are verified. Upon completion of verification, a Letter of Intent is issued, and then the remaining amount has to be deposited.
How much can you earn from a gas agency?
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A gas agency business is considered a year-round and profitable venture. A distributor earns a commission of approximately ₹73 per 14.2 kg cylinder. If a distributor supplies 3,000 cylinders a month, their total earnings could be around ₹2.19 lakh. Even after deducting expenses, a net profit of approximately ₹70,000 can be earned. In urban areas, many distributors deliver up to 500 cylinders daily, which can lead to monthly earnings of ₹10 lakh or more.