Gas Agency Dealership Challenges

The Challenges of Running A Gas Agency Dealership

Liquified Petroleum Gas (LPG) market demand is high year-round, making it a profitable venture for anyone interested in business. With the growth of industries, and rising demand for domestic needs, India is slowly transitioning towards greener alternatives by including LPG in the energy mix. While the business is lucrative, there are a set of challenges that one might face while starting or running a gas agency, which is why today we will outline the process of getting a dealership from the distributor and the challenges of running it.

Stepping into The Realm of Gas Industry: Taking The Dealership

To establish yourself in the LPG gas industry, the initial step is to choose a distributorship type. There are four various types of distributor categories; Urban, rural, R-urban, and Hard-to-reach regions. Before applying you should ascertain the precise location for the set-up of the agency. This can be achieved by conducting a thorough survey of the area. This helps you understand the suitability of the chosen location.

Other than that, there are some prerequisites which must be followed to get the dealership:

  • The age limit for taking gas agency is between 21 and 60 years.
  • The applicant must have a minimum qualification of 10th pass and certification from an accredited board.
  • No member of the applicant’s family must be employed by a leading Oil and Gas marketing company.
  • A non-refundable application fee should be submitted as mentioned by your gas agency.
  • Additionally, a reserved fund of 20-25 lakh and land to construct storage facilities are required.

Navigating Challenges in Running LPG Gas Agency Dealership

Regulatory Compliance and Licensing

The gas industry is heavily regulated due to safety and environmental concerns. Obtaining mandatory permits, letters of intent, licenses, and compliance with safety standards set by local and national authorities is crucial. This might be challenging for anyone new to the industry. While choosing Shivgas as your LPG gas distributor you get assistance in fulfilling the regulatory requirements, and streamlining the process for our prospective dealers.


In India, there are multiple public undertaking companies, and private companies running LPLG gas distributorship across the nation. The high number of companies and their wide network of agencies creates competition in the market. If you are just starting, it might be challenging to navigate in the cluttered market. But with the right audience identification, approach with planned marketing strategies, and support from your gas agency one can thrive in the market, and start earning ROI.

Staffing and Training

While starting your LPG gas agency, it is a must that you hire the right people who can handle the storage, maintain safety procedures, and contact customers to help customers navigate through their queries. Finding the right skilled staff who are knowledgeable about gas handling, safety procedures, and excellent customer service is a challenge. Continuous training and upskilling are necessary to ensure that the workforce is equipped to handle the intricacies of the gas business.

Technological Adaptation

Embracing technology and integrating it into daily operations can be a hurdle, especially for traditional dealerships, implementing online payments, an automated booking system, and efficient tracking mechanisms can improve customer service, for this, the dealership needs to invest time and resources for staff training and improving their efficiency with following the advanced rules and regulations.

Supply Management

One of the major challenges that any gas agency dealership faces is to optimise the supply chain. The needs can go up and down depending on economic factors, religious factors, and seasonal factors. While domestic LPG needs can go up during festive times and winters, the same does not apply for other months. This is why tracking customer behaviour, understanding market ups and downs, and utilising customer management software can prevent you from overstocking or understocking the cylinders.

How Shivgas Is Helping You Set Your Gas Agency Dealership

Prioritising Safety Training

While starting up your agency, safety is non-negotiable. Proper handling, storage and transportation are paramount. This is why, when you choose Shivgas as your distributor, you get comprehensive training and guidance that helps you learn better equipment handling, and ensure that safety protocols are followed at all times.

A Customer-Centric Approach

Customer service and satisfaction help you in better relation management with your loyal customers, and approach to new consumers. To have a customer-centric approach at your agency, we guide our dealers in delivering exceptional customer service that addresses complaints promptly and ensures timely deliveries to foster trust and satisfaction.

Standing Out in A Crowded Market

As we have already addressed one of the challenges of any dealer or large distributor is to stand out in a crowded market. This is where Shivgas comes in. Our dealers stand out by offering innovative solutions and personalised approaches. Our experienced team provides insights and strategies to help dealerships thrive amongst the competition.

Leading The Industry with Technology Integration

As a leading LPG gas company, Shivgas is leading its way with innovation and technology. Integration of methods that help in the automation of bookings, payments, and efficient tracking offers a better customer experience. Shivgas encourages the use of new technology by our dealership partners.

Bottom Line

Well LPG gas dealership is a lucrative business, and having the right partner helps in propelling growth and getting you through the challenges of the business. Shivgas has been in the industry for over 30 years and has a wide network of dealer and distributor who handles home delivery, truck delivery and bulk delivery to different types of distributorship.

With our expertise, support, and commitment to excellence, we stand as your reliable ally in navigating the gas dealership landscape. Get an LPG gas dealership from Shivgas, to embark on a successful journey in the LPG industry.

Comment (2)

2 responses to “The Challenges of Running A Gas Agency Dealership”

  1. We want a retail GAS Agency in Villianur Pondicherry State

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