Start Your Dealership

Starting a gas agency business in India—especially as a distributor of LPG from companies like Indane, Bharat Gas, or HP Gas—can be a highly stable and rewarding venture.

LPG is a daily essential in most households.

Creates jobs for delivery staff, office assistants, mechanics, etc.

An LPG distributor acts as a middleman between LPG companies (such as Indian Oil, Bharat Petroleum, or private companies like Total, SHV Energy, etc.) and the end users. They operate under a license or dealership agreement.

If you’re planning to go into this business and want help with a business plan, investment breakdown, or profit calculation, just let me know—I can help you map it all out!

Eligibility

To apply for an LPG Gas Agency, you must meet the following criteria: 

Dealership Document Requirements

Gas Distribution Areas

Who Can Apply for Gas Agency?

Profit Margin and Business Potential

Term and Conditions

LPG Gas Dealership: Profit Margin & Capital Requirements

AspectDetails
Initial Investment₹5 Lakhs to ₹10 Lakhs (Varies based on location, agency size, and infrastructure)
Infrastructure Cost ₹3 Lakhs to ₹6 Lakhs for setting up storage tanks, delivery vehicles, and safety equipment
Location Setup ₹1 Lakhs to ₹2 Lakhs for office space, storage area (rental or ownership), and facilities
Transportation Vehicles ₹2 Lakhs to ₹5 Lakhs (for procuring delivery trucks or vehicles)
Working Capital ₹1 Lakhs to ₹3 Lakhs (for initial inventory and stock purchases)
Total Capital Investment ₹5 Lakhs to ₹10 Lakhs (Initial Setup Cost, operational costs, and working capital)
Profit Per Cylinder ₹50 to ₹100 per LPG cylinder sold (Profit margins depend on location, volume, and distribution network)
Revenue Potential In high-demand areas, the business can handle up to 500-1000 cylinders per month, resulting in a monthly revenue of ₹25,000 to ₹1,00,000 (varies by area and demand)
Monthly Profit Profit of ₹25,000 to ₹1,00,000 (Depending on location, volume of sales, and operational efficiency)
Return on Investment (ROI)Typically, the ROI is achieved within 2-3 years depending on the scale of operation and location. In higher-demand urban areas, ROI can be achieved faster.
Fixed Costs Rental/Lease for Storage Facility: ₹20,000 to ₹50,000 per month, depending on location
Variable Costs Transportation & Delivery: ₹15,000 to ₹30,000 per month (based on distance and fuel prices)
Break-Even Period Approximately 1-2 years depending on sales volume and operational efficiency
ProfitabilityConsistent demand in both urban and rural markets ensures steady growth. Profit margins improve as the business scales up and operational efficiencies are optimized.