How to Apply for a Gas Agency Dealership in India?

In India the thriving energy sector offers the remarkable opportunity to gain both financial success and personal fulfilment—the gas agency dealership. This entrepreneurial path allows an individual to be a great business dealer ensuring that the nation’s LPG supply is met efficiently and safely.

However, becoming a gas agency dealer is not a straightforward or easy process; rather it involves a meticulous journey that can make everything stressful. But it will get easier to some extent if you know all the possibilities and major criteria involved in applying for an LPG gas agency dealership. This blog offers you a roadmap to success in this dynamic industry.

Navigating the Application Process for Gas Agency Dealerships in India

The capital necessary to start a gas agency in India depends on multiple factors like location, infrastructure requirements, marketing tactics, your business goal, etc. However, an approximate estimate suggests that the minimum amount needed to proceed with your gas agency dealership can be around 10-15 lakhs INR.

This estimated amount covers the cost of receiving necessary licenses and permits, setting up the infrastructure, purchasing the initial stock of gas cylinders, and marketing expenses. The cost will vary depending on your specific needs and expenses. That’s why it’s worth mentioning that the actual finance necessary to operate a gas agency in India may be higher or lower based on various factors and considerations. So, consult a professional financial advisor for a more accurate estimate.

Understanding Eligibility Criteria for LPG Distributorships

Before we start discussing the application process, it’s necessary to understand the eligibility criteria set by OMCs. these criteria often include:

• Educational qualifications

• Financial capabilities

• A clean legal record

• Property ownership

• Leasehold rights for the proposed dealership location

Every OMC has slight variations, so check the exact requirements of the OMC you are interested in.

The government of India has specific guidelines for LPG distributorship for different dealerships operated by oil marketing companies (OMCs) like Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL).

Type of Distributorship Area

1. Sheheri Vitrak: This refers to urban dealerships or distributors who mostly operate in city areas. They cater to the fuel and petroleum product needs of urban and semi-urban regions in India.

2. Rurban Vitrak: In the guidelines, the word Rural Urban refers to LPG Distributor located in ‘Urban Area’ and offers service to the LPG Customers in particular ‘Rural Area” that mostly covers all villages coming under 15 km from the municipal limits of the LPG distributorship location and or the area identified by OMCs.

3. Gramin Vitrak: These guidelines have the ‘Rural Area’ that has the definition of ‘Rural’ as per Census 2011. The LPG dealers located in the ‘Rural Areas’ are Gramin Vitrak who provides LPG service to the LPG customers of specified rural areas. It will cover all villages falling within 15 km of the boundary limits specified by the respective OMCs or the LPG Distributorship location.

4. Durgam Kshetriya Vitrak (DKV): The LPG distributors will be set up in special areas where Gramin and Rurban Vitrak are not feasible. The location includes hilly regions, forest areas, tribal inhabited areas, sparsely populated, disturbed areas, islands, and Left Wing Extremism (LWE) affected areas. They will provide service to the LPG customers situated in DKV areas as guided by the respective OMCs.

Eligibility criteria to apply for LPG distributorship

• Citizenship: Indian

• Education: Xth standard or equivalent

• Age: 21-60 years (except for FF category)

• FF Category: No age restriction

• Family: Not related to OMC employee

• Multiple Dealerships: Meets norms

• No Malpractices: No history of terminated agreements

• Land Ownership: Owns suitable plot for LPG godown

Bottom Line

Becoming a gas agency dealership owner in India requires dedication and careful planning. So dedicatedly follow the eligibility criteria, choose the right OMC, and follow the application process diligently. Thereby, you can pave the way for a successful career in the LPG gas industry. Have a good luck!