OMCs back interim LPG distributors' commission hike; ministry approval awaited: AIHPGDA

New Delhi: Oil marketing companies (OMCs), including Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL), have agreed to jointly recommend an interim increase in LPG distributors' commission, even as proposals for a commission revision await approval from the Ministry of Petroleum and Natural Gas, according to a statement by the All India HP Gas Distributors Association (AIHPGDA).

In a communication dated October 22, AIHPGDA President Rajendra B said the assurance came during a bipartite meeting held on October 21 at IOCL's head office in Mumbai, attended by marketing directors, executive directors and senior officials of the three OMCs, along with representatives of LPG distributor associations.

"Management informed us that revision proposals have already been submitted to MoPNG. The Directors also agreed to jointly recommend an interim increase within a definite timeframe. Ministry approval remains awaited," the association said.


During the meeting, distributors highlighted financial distress, rising operational costs and commercial pressures, including declining refill sales in several markets, restrictions on new LPG connections and unsold commercial stock affecting working capital.

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"The Directors expressed concern about deteriorating field relations and assured action on issues within OMC authority relating to forced upliftment of NDNE, FTL and Non-Fuel Products."

The association also raised concerns over changes to commercial indents without distributors' consent.

"They agreed that indents should not be changed without the distributor's consent," it stated, adding that necessary instructions would be issued to field officials.

Regarding restrictions on new LPG connections, the association said management had reviewed the matter at the highest level and work was underway to address the issue.

Distributors also sought written standard operating procedures (SOPs), digital audit trails and independent grievance redressal mechanisms to improve transparency and accountability.

The meeting also discussed LPG-PNG safeguards, commercial business practices, reconciliation of OMC records with invoices and GSTR-1, supply-chain accountability and consumer safety.

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"OMC Management appreciated the dedication of distributors and staff during the recent crisis, while indicating that complete operational normalisation would take time," it added.

The association further stated that the distributors had requested meeting minutes and an action matrix specifying responsibilities, deadlines and matters requiring ministry intervention.

"AILDF, FLDI and AIHPGDA will continue their work and follow up firmly and constructively. Our unity remains essential for securing a financially viable, respected and operationally secure distributor network," it said.

Separately, Federation of LPG Distributors of India (FLDI) in an X post said that it is "Grateful to the Petroleum Secretary for facilitating the constructive 21 October meeting with OMC Directors (Marketing), bringing LPG trade concerns directly before senior leadership."