Government of India, India, Life, Stories

Government issues new guidelines for LPG Distributorships


In a bid to make the LPG distributorship more broad based, participative and transparent, the government has issued new unified guidelines for selection. Among other things, the guidelines talk of 33% reservation for women across all categories.


The Ministry of Petroleum and Natural Gas (MoPNG) has issued new guidelines for selection of LPG distributorships after a comprehensive review of the existing distributorship selection policies. The objective of the new guidelines is to strengthen the LPG supply chain with focus on rural areas and creating job opportunities through supply chain system.

Major Features of the new guidelines

Following are some of the major features of the new unified guidelines.

  • Four broad types of distributorships with varying refill ceiling limits- Sheheri, Rurban, Gramin and Durgam Vitrak. 
  • Eligibility norms for age, education, fund requirement and ownership of land for godown & showroom have been relaxed to make selection process more participative.
  • 33% reservation to women across all categories has been introduced to encourage women entrepreneurship. 3% reservation for Divyang candidates (persons with disability)
  • As a part of Government’s Digital India campaign, Online filing, processing and selection has been introduced for Sheheri distributorships on a pilot basis.
  • To take care of interest of Defence personnel and their dependents, priority in selection under Government Personnel category has been introduced.
  • Monetary norms for security deposit have been relaxed for the selected candidates belonging to SC/ST and OBCs.
  • In order to address the issue of last mile reach of LPG in difficult areas, LPG Suvidha Kendra facility will be introduced for improving delivery of services.
  • LPG distributorships would be set up in active collaboration with the State Government agencies to strengthen the supply chain in Durgam areas.

Irregularities are found in about 6% of the LPG Distributors

Regular Inspections are carried out by the Field Officers, Anti Adulteration Cell and Vigilance Department of Public Sector Oil Marketing Companies (OMCs) at LPG godowns and showrooms of LPG distributorships to identify irregularities. These regular surprise inspections at conducted at distributor’s premises by way of refill audits, surprise checks at customer’s premises, en-route checking of delivery vehicles etc.

As per data available with the government, more than 30000 inspections have been carried out by the OMCs in each of the years from 2012-13. The percentage of established cases of irregularities (black marketing/ diversion/ overcharging/ underweight/ irregular home delivery of cylinders by LPG distributors) compared to the number of inspections has been increasing in the last two years. From 6.8% in 2012-13, it went down to 4.4% in 2013-14. It then increased to 6.3% in 2014-15 and has further increased to 7.2% in 2015-16 (till October 2015).

new guidelines for LPG Distributorships_number of inspections vs percent of irregularities found

The percentage of irregularities in states varied from year to year. In 2012-13, more than 10% irregularities were found in 7 states. This was down to just 3 states in 2013-14.  Five states had more than 10% irregularities in 2014-15 and 10 states have more than 10% irregularities in 2015-16 (till October 2015).

In all established cases of irregularities, action is taken against the erring distributors as per provisions of Marketing Discipline Guidelines (MDG) and distributorship agreement.

The government believes that the new unified guidelines will pave the way for a more broad based, participative and transparent system of selection of distributors across the country that will also help arrest irregularities. This year, the OMCs will start the process for selection of new distributors in 10,000 new locations.

Featured Image: By Krish Dulal [CC BY-SA 3.0]


About Author

Rakesh has been working on issues related to Right to Information (RTI) for a decade. He is a Data/Information enthusiast & passionate about Governance/Policy issues.



  1. yogendra singh s/o shri jainarayan singh on

    I want to take am indane gas dealership in my village ..G T ROAD Jagatpur , distt.. Allahabad , up

  2. Mohd. Zahid Hasan on

    I want to take an indane/HP hasa dealership in my Nagar Punchayat “Siwal Khas” Meerut

    • Dear sir I entrusted LPG distributorship my village post pipara Bazar district kushinagar 274305

  3. The of process issue of connection in Indian Oil corporation is very bad, some times it take 3-4 days, it should be reduced 3-4 hrs

  4. I won’t take Gas Agency Nagar Panchayat sheeghra bareilly up pincod 243001 because there have no any Gas Agency

  5. I am a applicant for LPG distributor and try to apply online against advertisement dated 29th Dec Dainik jagran in UP but digital India program fails my efforts because incomplite gramin vitrak chayan wevesites of OMC and last date for on line apply is 28th Jan ….



  7. sandeep kumar tyagi on

    I want to know last date to submit the form of distributorship under RGGLV Scheme… My contact no. is 9058459887….

  8. Sir I Prem singh is applicant of lpg gramin vitrak
    i am married and land for project is of my father-pl tell me that plot given by my father to me in affidavit under date of application is eligible or not eligible or required in registered agreement
    Thanking you sir

  9. Sir I Prem singh is applicant of lpg gramin vitrak
    i am married and land for project is of my father-pl tell me that plot given by my father to me in affidavit under date of application is eligible or not eligible or required in registered agreement
    Thanking you sir

  10. Dear Sir.My application reference No:BPC03109090725022017,Gramin Distributorship Regarding Gram Panchayat”HALIM NAGAR “Block-Rudouli,Distt :Faizabad But by mistake Category wrong fill & I’m belong SC,Category. I Humb’le requested to you please my application consider.

  11. Harjinder singh on

    I want interested in new gas agencies ole help me for information my con. no.09416791397

  12. Manish Singh on

    I want LPG agency in karakat bihar gramin area please inform me ,my 8873743491

  13. Manish Singh on

    sir i am interest lpg distributer take good sevice in my rural area gorari rohtas bihar

  14. Rakesh patidar on

    सर मे जिला देवास के गांव विजयागज मण्डी से हूॅ सर मे गैस ड़िलरशीप लेना चाहता हूं कृपा मेरी मदद करे मेरे मोबाइल नंबर है9981341348

  15. amit kumar singh on

    sir i am interested in LPG distributor ship. my area code is-841424 & my cell number is 8521371489

  16. I am intrested to apply for LPG distributor ship for Madhubani bihar 847402 location , please help me out on 9643807096

  17. tuna pradhan on

    i am tuna pradhan from talcher, gobara . i disability person (60%) i intrested in kerosene
    dealership please inform mobile no- 9861070955 and my area code is – me.

  18. Sunita Meena on

    Sunita Meena w/o Sh Hetram Meena, Mob No 9868120393 ( add- Roopbas,Bhugor, post. Motidungri, Teh & Distt- Alwar-301002, Location- Bhugor, Gram Panchyat- Bhugor, Tehsil- Alwar, Distt-Alwar, State- Rajasthan. ( RGGLV SCHEME ADVERTISED DATED 29.02.2012, LAST date was 30.03.2012.

    Respected sir,
    I applied for LPG Distribitorship for the location Village/Kasba “Bhoogor” District Alwar (Rajasthan) advertised at Serial No 29 under ST Category in the common advertisement dated 29.02.2012 issued by all the three Oil Corporations. I submitted the application form on dated 30.03.2012. After satisfied scrutinized of the my appliaction, issued a letter eligible for this SchemeI have successful in draw held on dated 09.08.2013 under rgglv scheme. but during FVC , my candidature was rejected and replied that you are not residence of given location. I have already submitted the Tehasildar, Alwar issued a “STANDARD RESIDENCE CERTIFICATE”(in yellow colour) on dated 21.08.2013 desired by field office. It is mentioned as Sunita Meena W/O Het ram meena, resident Roopbas (Bhoogor), Alwar, Rajasthan. A separate clarifications issued by Tehsildar, Alwar regarding my resedence also submitted to FVC officer. But HPCL not considered it and without any more inquiries or any showcases noticed, they cancelled my candidature vide letter dated 12.09.2013 by Sr. Manager , HPCL, Regional office , Jaipur, Rajasthan.

    After this injustice I was knocked door of High Court, Jaipur Bench and notice issued by Hon’ble High Court dt 28.10.2013.

    during my proceeding/ apeal and passed stay order by under High court Jaipur Bench, the HPCL issued LOI to Sh Vishram Meena (2nd applicant) vide dated 31.12.2013 without any FVC. While Sh Vishram Meena is not complete the HPCL guide lines, because he is not residence of said location. He is not having any land for this purpose within this location as per HPCL guide lines. He is totally fraud. He purchased land in 2016, which was not considerable.The case is proceeding under High court of Jaipur bench since 28.10.2013.

    My requested that pl give me Justice and dismisses the fraud applicant as above. The HPCL already loss of revenue due to wrong/ false report submitted by FVC officer. Here i observed that HPCL officers favour to Sh Vishram Meena (2nd applicant) as you better understood. it is also intimated that FVC officer, had collected false documents against me without any knowledge of me. he HPCL is working against me .

    I hope that, you will give me Justice.

    Thanking you in advanced.

    Sunita Meena w/o Sh Hetram Meena, Mob No 9868120393 ( add- Roopbas,Bhugor, post. Motidungri, Teh & Distt- Alwar-301002,
    Location- Bhugor, Gram Panchyat- Bhugor, Tehsil- Alwar, Distt-Alwar, State- Rajasthan.

  19. i want to get indane gas please cont me. 9012380389.
    nothing any gas agency in my area.

  20. sanjai kumar singh on

    sir i am ex ARMY MAN my best setteled i want INDANE GAS agency in my village. tahasil-MEHNAGAR towen – bogariya bazar. my no is 7839288667

  21. Sir can you tell me, is that necessary to go for draw, what if I filled the form but won’t go for lucky draw..?? please tell me fast, it’s tomorrow

  22. sir, is one lpg dealer or his family stand in panchayati raj elections.please provide information regaurding the dealer rules and resulations in point of elections

  23. can dealer sublet the agency and can a dealer cross his area of jurisdiction of 15 km radius in DKV catagory and if does so what is the penalty
    and can a dealer of hp lpg under dkv catagory give on affidavit an area for running the agency,
    on what reasons and illegalities the agency holder is imposed penalty