The LPG Distributors Association of India has warned of a nationwide agitation unless the Central Government addresses its long-pending demand for a higher distributor commission.
The LPG Distributors Association of India (LDAI) has urged the Central Government to address its long-pending demand for an upward revision in distributor commission, warning that it will launch a nationwide agitation if the issue remains unresolved.
āAfter 2018, the Central Government had marginally increased the commission paid to LPG (liquefied petroleum gas) distributors. The demand for a comprehensive revision in the commission, including administrative and home delivery charges, has remained pending for several years,ā BS Sharma, President, LDAI, said during a media briefing in New Delhi on Sunday.
Sharma said the ā¹35 currently paid for home delivery of an LPG cylinder is often inadequate to cover operating costs, particularly in areas involving long travel distances. He further alleged that LPG supplies have been significantly curtailed in areas notified for piped natural gas (PNG) distribution.
āThe Central Government, in an order issued on March 24, 2026, has stopped the supply of LPG cylinders in areas where PNG pipelines have been laid. Besides impacting the business of distributors, this is also a violation of consumer rights,ā declared Sharma. āNew LPG connections have been prohibited to benefit the PNG players.ā
The Ministry of Petroleum and Natural Gasā Natural Gas and Petroleum Products Distribution Order mandates that LPG supply may cease after three months if consumers do not switch to PNG in areas where piped gas connectivity is available, subject to certain exemptions. State-run oil marketing companies Indian Oil, HPCL and BPCL have also temporarily halted the issuance of new standard 14.2-kg domestic LPG connections, according to LDAI, leaving a large number of applications pending.
Moreover, among the active LPG household customers, 31.6 million accounts have been suspended for failing to complete Know Your Customer (KYC) requirements, according to data cited by the Ministry of Petroleum and Natural Gas.
Sharma alleged that OMCsā influence was being used to promote PNG adoption at the expense of LPG distributors. According to him, the resulting business pressures have forced several distributors to either shut operations or sell their dealerships, while consumers face the cost of transitioning to PNG.
Founded in 2009, LDAI comprises more than 15,000 distributors across 23 states. Compared with larger representative bodies such as the All India LPG Distributors Federation (AILDF) and the Federation of LPG Distributors of India (FLDI), it is often regarded as a smaller industry grouping. Both AILDF and FLDI have distanced themselves from the proposed agitation, instead advocating dialogue between the Government, OMCs and distributors.
Demand for Action
LDAI office-bearers accused the Government of ignoring repeated representations seeking an early resolution of their demands. They also alleged that officials of oil marketing companies were pressuring distributors to sell accessories such as gas stoves, rubber tubes, lighters and aprons through dealerships.
They further contended that sales personnel of OMCs are forcing distributors to retail 19-kg non-domestic LPG cylinders along with Free Trade LPG (FTL) by modifying distributor indents for LPG stock allocation. The association alleged that such practices violate provisions of the Essential Commodities Act.
āLDAI will be organising nationwide sit-ins and demonstrations on October 26 over the delay in increasing the commission paid to distributors. If the Government fails to provide any satisfactory redressal to our demands, the association will lead an indefinite strike by LPG distributors across India,ā Sharma said.
The main demonstration will be held at the Central Business District (CBD) Ground in Shahdara in the national capital.
India, the worldās third-largest energy consumer, is pushing to increase the share of natural gas in its primary energy mix from about 6-7 per cent to 15 per cent by 2030. This drive includes expanding city gas distribution (CGD) networks, with a target of approximately 126 million domestic PNG connections by 2034, alongside investments in pipeline infrastructure, LNG terminals and compressed biogas (CBG). The Governmentās push to expand PNG adoption has become a point of contention for LPG distributors, who allege that the transition is affecting their businesses and limiting consumer choice.
– Manish Pant