Private Gas Cylinder Price: New LPG Distributorship Opportunities
LPG distributorship can be considered one of the most advantageous business opportunities in India with a promising future. The Ministry of Petroleum and Natural Gas announced a scheme, Pradhan Mantri Ujjwala Yojana, back in 2016, opening up new prospects. Individuals can apply for both public and private LPG distributorships. Though the private gas cylinder price may be a little higher than the government agencies, the excellent services offered by the private companies are getting popular with consumers.
This blog delves into the exclusive investment opportunities in the LPG gas distributorship, starting with the types of dealership based on your locality:
Location-Based LPG Distributorships
To gain a high profit margin in your LPG dealership, you need to consider a good location. Urban cities come with high population density but have high competitors; on the other hand, rural and semi-urban areas may have low populations.
Based on the area, the type of distributorship can be categorized into four segments:
- Sheheri Vitrak: It is for cities with populations of 10-40+ lakh.
- Rurban Vitrak: Applicable for towns with less than 10 lakh population
- Gramin Vitrak: The dealerships cater to villages and clusters of villages.
- Durgam Khetriya Vitrak: It is applicable for particularly remote or challenging areas.
Why Invest in LPG Distributorship?
Owning a gas dealership comes with several advantages, regardless of the distributorship you choose. The private gas cylinder price may seem like a problem; however, gas connection is a lot easier, making it a popular choice for many households and commercial businesses.
1. Rising Demand for Clean Fuel
Climate change and depletion of natural resources are growing concerns in today’s world. Thus, the government is pushing towards a cleaner fuel economy. Using coal and wood when burned releases toxic gases that are harmful for health. Cooking in a closed space can lead to suffocation and other health hazards.
Liquefied petroleum gases are cleaner compared to firewood or coal and produce a lower amount of CO₂, CO, etc. When it burns, it leaves behind minimal residue. Thus, we can say that the demand for LPG gas will only increase over the years.
2. Government Support & Subsidies
Many consumers are still worried about the gas cylinder price of private and public distributorships. However, the government has introduced a subsidy of ₹200/- per 14.2 kg cylinder for up to 12 refills per year to make it more affordable for PMUY consumers. This allows a larger market segment for LPG gas dealers.
3. Scope for Expansion in Rural & Semi-Urban Areas
The number of households using LPG in the rural and semi-urban areas has increased due to initiatives like the Pradhan Mantri Ujjwala Yojana (PMUY). It can be considered a golden opportunity for individuals planning to own an LPG gas dealership.
Distributorship owners can enter an untouched market and create a strong customer base without worrying about sharing profits with competitors. It also reduces credit risks and allows dealers to upsell relevant appliances, like gas stoves, regulators, safety devices, and more.
4. Long-Term Revenue Potential
LPG gas distributorship can be considered one such business with long-term growth potential. Liquefied petroleum gas is much more convenient. It’s easier to control the heat, making cooking easier; it needs low maintenance and can be easily stored or transported. People who’ve become used to cooking with LPG will be less likely to switch to traditional fuels.
People can’t just stop cooking or eating just because they ran out of gas; a faster delivery is essential to keep customers satisfied. For this reason, private LPG distributorships are becoming more popular even with a high cylinder price. By focusing on customer service and faster delivery, dealers can retain their customers and also increase customer loyalty.
Future of LPG Business in India
The LPG market in India is expected to see steady growth over the next few years. Carbon emissions have become a pressing issue, and India is committed to reducing emission intensity by switching to cleaner fuel.
The widespread government initiatives (PMUY) are encouraging LPG usage, which has made it easier for dealers to penetrate the semi-urban and rural areas. Metropolitan cities like Mumbai, Delhi, and Bangalore are currently taking the lead with high population densities. Based on usage, the market can be divided into residential, commercial, and industrial requirements.
Dealerships can choose to be owned by either a private or a public agency. The cylinder price of private
If you are planning to apply for a dealership, here are the initial investment and infrastructure requirements you should be aware of:
- Capital Requirements (may vary depending on the private and government LPG dealership)
- Land and Infrastructure Norms
- Safety and Compliance Standards
You may also like: Franchise Opportunities 101: A Comprehensive Guide to Starting Your LPG Gas Business
Wrapping Up
Owning an LPG dealership certainly offers exclusive growth opportunities. The government’s initiative to encourage consumers from rural households to urban industries offers several opportunities to earn a lump sum. The private gas cylinder price may seem like a deciding factor; however, combining it with fast delivery and great customer service can make it a great opportunity to own a private gas dealership.
FAQs
1. What is the minimum investment required to start an LPG distributorship?
The investment to start an LPG distributorship may vary depending on which dealership you’re choosing. For SHIVGAS, the initial investment is around the 20-25 lakh range; however, the rate may change depending on whether you want a domestic or commercial distributorship.
2. Can I apply for LPG distributorship in more than one location?
In India, it’s allowed for an individual to apply for LPG distributorship in more than one location. However, please keep in mind that you need to fill out a separate application form and pay the fees for each location.
3. How long does it take to get approved for a distributorship?
There are a few factors that can impact the approval of your distributorship, such as eligibility criteria, land ownership and safety, and the overall selection process. Please contact your agency to know more details.
Comment (0)