LPG dealers demand higher commissions and a review of supply policies after a Delhi protest, warning of a nationwide strike if concerns remain unresolved
NEW DELHI, October 26, 2026: LPG distributors from across the country have demanded a revision of their commissions, citing rising operating costs and unresolved business concerns. More than 4,000 distributors reportedly joined a protest organised by the LPG Distributors Association (India) at CBD Ground in New Delhi on Monday.
The association has given the government one month to address its demands and warned that distributors could launch a nationwide strike if the issues remain unresolved.
Distributors Say Commissions Have Not Kept Pace With Costs
B. S. Sharma, national president of the LPG Distributors Association (India), said distributors had been seeking a comprehensive commission revision since 2018.
He argued that increases in domestic and commercial LPG prices, alongside higher business expenses, had placed pressure on distributors’ finances without a corresponding change in their commissions.
Sharma cited domestic LPG prices rising from around ₹450 to ₹1,000 and commercial LPG prices increasing from ₹1,100 to ₹3,033. These figures were presented by the association as part of its case for a review.
He also referred to interim relief provided in 2022 after a study on commission revisions. However, he said distributors were still waiting for a comprehensive decision.
Association Seeks Government Intervention
Sharma said the association had repeatedly approached the government over the past four years but had not received a resolution that addressed all its concerns.
The protest brought together association members, state representatives and distributors from various states and Union Territories. Participants called for discussions on commissions, LPG supply rules and operational issues affecting their businesses.
The association has urged the government to establish a time-bound process for addressing these demands.
PNG Policy Raises Concerns Among LPG Businesses
The association opposed the government’s March 24, 2026, order concerning LPG supplies in areas where piped natural gas infrastructure is available.
Sharma said the policy could affect distributors operating in areas where private companies are expanding PNG networks. He also argued that consumers should retain appropriate choices when selecting their household fuel options.
The association has sought a review of the order and an assessment of its potential impact on LPG distributors.
Distributors Question e-KYC-Related Connection Suspensions
The protest also highlighted concerns over the reported suspension of approximately 3.16 crore LPG connections because of incomplete electronic know-your-customer verification.
Sharma questioned the restrictions and referred to the Supreme Court’s judgment in K. S. Puttaswamy v. Union of India while discussing biometric verification.
The reported figure and the association’s legal interpretation require independent confirmation. The circumstances and reasons behind individual connection suspensions may differ.
Operational Disputes With Oil Marketing Companies
The association alleged that some officials of oil marketing companies had interfered in distributors’ operations. It claimed that changes to distributor indents could affect supply quantities and lead to financial losses.
It also raised concerns about alleged pressure to sell additional items, including gas stoves, rubber tubes, lighters and aprons.
The association wants the relevant authorities to examine these issues and provide greater clarity on distributors’ operational responsibilities.
Nationwide Strike Warning After Delhi Protest
The association has set a one-month deadline for the government to respond to its demands, including a commission revision, a review of LPG connection policies and action on operational grievances.
Sharma warned that distributors could resort to a nationwide strike if the government failed to provide a satisfactory response.
The association said it was willing to continue discussions but wanted concrete action rather than further delays.
