HP Gas Dealership: LPG Cost, Profit & Apply
An hp gas dealership is an LPG cylinder distributorship under Hindustan Petroleum Corporation Limited's "HP Gas" brand. HPCL has 6,000+ LPG distributors serving over 85 million customers across India. The total investment ranges from ₹15 to ₹25 lakh including security deposit, godown construction, delivery vehicles, and working capital. Commission is ₹48 to ₹60 per domestic cylinder and approximately ₹120 per commercial cylinder. Selection happens through newspaper advertisements and computerised draw of lots, the same process used for Bharat Gas (BPCL) and Indane (IOCL).
People searching for "lpg gas agency dealership" should know that HP Gas, Bharat Gas, and Indane Gas all use the same unified LPG Vitrak Chayan process. If you've read our gas agency dealership guide, the process is identical. This page covers HP Gas specifically, including HPCL-specific requirements and contact points.
HP gas dealership at a glance
Parameter | Details |
|---|---|
Brand | HP Gas (HPCL LPG) |
Parent | Hindustan Petroleum Corporation Limited |
Status | Government of India Maharatna PSU |
LPG distributors | 6,000+ |
Customers | 85 million+ |
Investment | ₹15 lakh to ₹25 lakh |
Godown | PESO-compliant, minimum area per category |
Commission (domestic cylinder) | ₹48 to ₹60 |
Commission (commercial cylinder) | ₹120 |
Selection | Newspaper ad + computerised draw of lots |
Application portal | hindustanpetroleum.com (HP Gas Distributorship section) |
Initial term | 10 years (renewed in 5-year blocks) |
Age | 21 to 60 years |
Education | 10th pass minimum |
How an lpg gas agency dealership works under HPCL
An lpg gas agency dealership under HPCL follows this structure: you receive LPG cylinders from HPCL's bottling plant, store them in your PESO-certified godown, and deliver to households in your assigned territory. Revenue comes from per-cylinder commissions and margin on stoves, hoses, and accessories.
The dealership is initially granted for 10 years and renewed in 5-year blocks based on performance and compliance.
Cost breakdown
Cost component | Estimate |
|---|---|
Refundable application fee | ₹15,000 to ₹25,500 |
Security deposit to HPCL | ₹1 lakh to ₹5 lakh |
Godown construction (PESO-compliant) | ₹5 lakh to ₹12 lakh |
Showroom setup | ₹1 lakh to ₹2 lakh |
Delivery vehicles (2-3 tempos) | ₹4 lakh to ₹8 lakh |
Working capital | ₹2 lakh to ₹4 lakh |
Total | ₹14 lakh to ₹32 lakh |
Why Adwin earns more per delivery than LPG
HP Gas dealers already visit homes for cylinder delivery. Those same homes need inverter batteries. The comparison:
Factor | HP Gas dealership | Adwin battery dealership |
|---|---|---|
Investment | ₹15 lakh to ₹25 lakh | ₹5 lakh to ₹15 lakh |
Commission per transaction | ₹48 to ₹60 per cylinder | ₹800 to ₹3,000 per battery |
Deliveries for ₹3,000 income | 50 to 63 cylinders delivered | 1 battery sold |
Customer overlap | Households (cooking fuel) | Same households (power backup) |
Delivery infrastructure | Trucks and tempos | Same trucks deliver batteries |
PESO licence | Required (godown compliance) | Not required |
Seasonal demand | Year-round (cooking is daily) | Year-round, summer peak |
Threat from alternatives | PNG expansion in urban areas | Growing (solar + EV adoption) |
An HP Gas dealer who adds Adwin batteries to their showroom sells a ₹15,000 inverter battery every time a delivery boy mentions "we also sell batteries" during cylinder delivery. That one sale equals 250+ cylinder commissions.
Step-by-step application process
- Monitor hindustanpetroleum.com for HP Gas Distributorship advertisements
- Check if any advertised location matches your area
- Applications are also published through the unified lpggasdealerchayan.in portal (current window: 20 June 2026 to 31 July 2026, verify at publish)
- Register on the portal and create your profile
- Select the HP Gas location you want to apply for
- Pay the refundable application fee online (₹15,000 to ₹25,500)
- Submit documents: Aadhaar, PAN, 10th pass certificate, godown land papers, financial proof
- Appear for the computerised draw of lots
- If selected, undergo Field Verification Check (FVC) at your proposed godown
- Receive Letter of Intent (LOI)
- Construct godown as per PESO specifications
- Obtain PESO licence, fire NOC, local clearances
- Sign distributorship agreement with HPCL
- Receive initial cylinder stock and begin operations
Monthly profit calculation
Metric | Rural agency | Urban agency |
|---|---|---|
Active connections | 3,000 to 5,000 | 8,000 to 15,000 |
Monthly refills | 2,000 to 3,500 | 5,000 to 10,000 |
Commission per cylinder | ₹48 to ₹60 | ₹48 to ₹60 |
Gross monthly income | ₹96,000 to ₹2,10,000 | ₹2,40,000 to ₹6,00,000 |
Expenses | ₹40,000 to ₹80,000 | ₹1,00,000 to ₹2,50,000 |
Net monthly profit | ₹56,000 to ₹1,30,000 | ₹1,40,000 to ₹3,50,000 |
FAQs
How much does an hp gas dealership cost?
An hp gas dealership costs ₹15 to ₹25 lakh total including security deposit, godown construction, delivery vehicles, and working capital. The application fee (₹15,000 to ₹25,500) is refundable if not selected.
What is an lpg gas agency dealership?
An lpg gas agency dealership (LPG Vitrak) is a distributorship where you store and deliver LPG cylinders to households in your territory. All three PSU OMCs (HPCL/HP Gas, BPCL/Bharat Gas, IOCL/Indane) use the same unified selection process.
How to apply for HP Gas distributorship?
Monitor hindustanpetroleum.com and lpggasdealerchayan.in for advertisements. Apply online during open windows (current: June-July 2026). Selection is through computerised draw of lots. For IOCL's process, see our Indane gas agency guide.
What is the commission on HP Gas cylinders?
₹48 to ₹60 per domestic cylinder (14.2 kg) and approximately ₹120 per commercial cylinder (19 kg). Additional margin on stoves (30% on MRP), hoses, and accessories.
How is selection done?
Computerised draw of lots among all eligible applicants. No merit-based evaluation. Same process as Bharat Gas and Indane. All eligible applicants have equal probability.
What godown is needed?
PESO-compliant godown with minimum safety distances from residential buildings, fire equipment, ventilation, and cylinder stacking norms. Showroom within 500m of godown (2.6m x 3.0m minimum).
Is HP Gas dealership profitable in 2026?
Yes, it remains stable. Monthly net profit of ₹56,000 to ₹3.5 lakh depending on connections. However, PNG expansion may reduce urban LPG demand over the next decade. Rural agencies will remain strong.
Can I hold both HP Gas and Bharat Gas dealerships?
No. Multiple dealership norms restrict one person and immediate family from holding distributorships with more than one OMC.
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