Three Indian oil marketing companies have agreed to jointly recommend an interim increase in LPG distributor commissions, while proposals for a commission revision await government approval, a distributor association said.

Key Takeaways

  • The companies agreed to recommend an interim increase within a definite timeframe, but the association did not specify the timing or amount.
  • Distributors raised concerns about operating costs, refill sales, commercial stock and restrictions on new connections.

LPG distributor commissions await ministry decision

Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation gave the assurance at an October 21, 2026 meeting in Mumbai, according to the All India HP Gas Distributors Association (AIHPGDA).

In an October 22 communication, association president Rajendra B said management had already submitted revision proposals to the Ministry of Petroleum and Natural Gas. Ministry approval remained pending. The interim increase was a recommendation, not an approved change.

Distributors raise operating pressures

At the meeting, distributors cited rising operating costs, declining refill sales in several markets and unsold commercial stock that was affecting working capital. They also raised concerns about restrictions on new LPG connections.

The association said the companies agreed that commercial indents should not be changed without distributors’ consent and that instructions would be issued to field officials. Management also said work was underway to address the restrictions on new connections.

Distributors requested meeting minutes and an action matrix identifying responsibilities, deadlines and issues requiring ministry intervention. The association said distributor groups would continue to follow up.

Next milestone

The distributor associations plan to follow up as ministry approval remains pending.

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