Opening an LPG gas agency in India can be a long term stable and profitable business. Apart from cooking food in homes, LPG (Liquefied Petroleum Gas) is also used in shops, hotels and industries. Due to increasing demand for clean fuel, there are good business opportunities in this sector.
What is LPG gas agency?
LPG agency means that you supply gas cylinders to domestic, commercial and sometimes industrial customers in your area. These dealerships are provided by government oil companies or their authorized suppliers. The dealer has to handle tasks like storage (warehouse), delivery, following safety rules, serving customers and maintaining records. LPG is a flammable gas, hence it is very important to follow safety rules.
Who can take dealership?
- Applicant must be an Indian citizen and at least 21 years of age
- It is necessary to have at least 10th or 12th pass.
- Must not have any criminal record
- Land is necessary for warehouse and office
- It is necessary to follow the safety rules (as per PESO) for the warehouse.
- Many times companies select through lottery system.
How much will it cost?
Investment in this business depends on the place and level of work. Generally the cost can range from Rs 10 lakh to Rs 25 lakh. This includes.
- security deposit
- Cylinders and Equipment
- Build or rent warehouse and office
- delivery vehicles
- employees’ salaries
If you supply to industry also, the cost can be higher.
How much will be the earning?
In this business, profit is received in the form of fixed commission per cylinder.
- Commission on domestic cylinder up to around ₹40₹60
- Slightly higher profit on commercial and industrial cylinders
Earning depends on how many cylinders you sell. There can be good continuous income in areas with high demand. LPG gas agency is a reliable and stable business with consistent demand. However, strict adherence to safety rules and proper infrastructure is necessary. With proper planning and understanding the local demand, good income can be earned from this business in the long run.