Relief for LPG Distributors: Oil Companies Propose Interim Commission Increase

In a significant move, major oil marketing companies in India have proposed an interim increase in the commissions for LPG distributors, who have been facing rising operational costs. This decision, reached during a meeting in Mumbai, aims to address the financial challenges faced by distributors due to increased delivery personnel wages and fuel prices. The proposal is currently awaiting approval from the Ministry of Petroleum and Natural Gas. If approved, the new commission rates will help distributors manage their expenses more effectively and maintain efficient delivery systems across the country.

By Narendra Chaudhary Oct 25, 2026, 17:15 IST

Significant Development for LPG Distributors

New Delhi – In a positive turn of events for LPG distributors grappling with rising operational costs, major public sector oil marketing companies (OMCs) have reached a consensus to recommend an interim increase in dealership commissions. This decision was made during a meeting in Mumbai, as confirmed by Rajendra B, Chairman of the All India HP Gas Distributors Association (AIHPGDA). However, the proposal for the commission adjustment is currently pending final approval from the Ministry of Petroleum and Natural Gas (MoPNG).

Current Commission Structure and Distributor Concerns

Under the existing arrangement, distributors earn approximately ₹73 per domestic LPG cylinder weighing 14.2 kilograms, with around ₹30 to ₹35 allocated solely for delivery charges. Distributors have long advocated for an increase in this commission. According to the association, there has been a significant rise in the wages of delivery personnel, fuel prices for vehicles, and warehouse rents over the past few years, making it financially challenging for distributors to operate under the current commission rates.

Next Steps for Implementation

The directors of the oil marketing companies have assured that they will submit a joint recommendation for the interim commission increase to the ministry within a specified timeframe. Once the Ministry of Petroleum and Natural Gas approves this proposal, the new commission rates will be implemented nationwide, providing substantial support to gas agencies in maintaining their delivery systems and managing escalating administrative costs.