Two leading LPG distributors' unions oppose strike, seek talks on commission hike

The two leading LPG distributor federations have opposed a proposed protest in Delhi and an indefinite strike, saying the sector’s concerns should be resolved through discussions with state-run oil marketing companies and the Petroleum Ministry.

The Federation of LPG Distributors of India (FLDI) and the All India LPG Distributors Federation (AILDF), which claim membership of most LPG distributors in the country, have distanced themselves from the protest and strike call issued by a smaller splinter group.

The dispute centres on a demand for higher commissions for distributors of domestic cooking gas, along with relief from operational and commercial pressures.

The federations’ position follows a meeting held on October 21 at the headquarters of Indian Oil Corporation Ltd in Mumbai.

The meeting was attended by directors (marketing), executive directors and senior officials from Indian Oil, Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL), along with representatives of AILDF and FLDI.

Federations reject proposed agitation

FLDI said it did not support the proposed agitation and maintained that distributors’ concerns should be addressed through constructive engagement and concrete decisions.

The federation said it would continue pursuing the issues with the oil marketing companies and the Ministry of Petroleum and Natural Gas until they were resolved.

FLDI also said it did not support the proposed protest and indefinite strike, while backing dialogue with the oil marketing companies and the ministry for the “just demands” of LPG distributors.

AILDF said it was not participating in the proposed protest announced in Delhi on October 26.

The LPG Distributors Association of India (LDAI), a splinter group, has called for a day-long dharna in Delhi on October 26.

AILDF said it “believes in solutions through meaningful discussions” and that its “member distributors assure uninterrupted LPG home delivery, whatever the challenge.”

It also said, “When the nation needs us, we have always delivered. Every home, every crisis, every time.”

The All India HP Gas Distributors Association (AIHPGDA) also said the federations were in regular dialogue with the oil companies and the Ministry of Petroleum and Natural Gas.

According to AIHPGDA, solutions should emerge through discussions rather than direct action.

The federations have therefore separated their ongoing negotiations with the oil companies and the ministry from the protest and strike call made by the splinter group.

Commission unchanged for five years

The commission paid to LPG distributors for the sale of domestic cooking gas has remained unchanged for the last five years, even as costs have increased.

Distributor associations have been engaging with the oil marketing companies and the Petroleum Ministry to seek a revision.

AIHPGDA said OMC management informed the meeting that proposals for revising the commission had already been submitted to the petroleum ministry.

The directors also agreed to jointly recommend an interim increase within a definite time frame, although approval from the ministry was still pending, according to AIHPGDA.

A revision would provide distributors some relief from rising operating costs, but the extent of that relief would depend on the size and timing of any increase.

The commission issue has been taken up repeatedly by the federations at different levels.

AILDF said its engagements took place in March 2026, April, June, August, September and October 2026.

The federation said it had consistently raised distributors’ concerns with the oil companies, the Ministry of Petroleum and Natural Gas, and GAIL/IGL officials.

AILDF said that decisions can take time because of the world energy crisis, while expressing hope for better outcomes for the distributor network.

FLDI said it and AILDF had jointly raised demands relating to fair commission, distributor viability and operational concerns before the leadership of the oil marketing companies.

FLDI described the dialogue as a positive first step.

Distributors cite operational and commercial pressure

The associations have sought an end to pressure on distributors to take up non-fuel products, protection against changes to refill indents without their consent, and written standard operating procedures to improve relations with field officials of the oil marketing companies.

A refill indent refers to an order placed for LPG supplies.

FLDI said the associations had jointly sought a commitment that refill indents would not be changed without distributors’ consent.

The federation also said the associations had opposed push sales of non-fuel products, NDNE or FTL, and had argued that business should be demand-led.

OMC officials assured the associations that these concerns would be considered to promote ethical business practices, FLDI said.

AIHPGDA said distributors had highlighted financial distress, operational difficulties and commercial pressures at the October 21 meeting.

The association said digital reforms had improved transparency, but refill sales had declined in several markets while expenses continued to rise.

It said restrictions on new connections, unpaid work and unsold commercial stock were adding to distributors’ working-capital pressures.

Restrictions on new LPG connections were also raised as a separate concern by distributors.

AIHPGDA said management had reviewed the issue at the highest level and that work was under way.

The association also sought early operational relief when the geopolitical situation improves.

The associations said the pressure to take up non-fuel products and other sales categories, including DNDE and FTL, was another area requiring attention.

They argued that sales should be driven by genuine demand rather than targets imposed on distributors.

AIHPGDA said the directors had expressed concern over deteriorating relations between distributors and field officials.

The directors assured action on issues within the authority of the oil marketing companies relating to the forced upliftment of non-fuel products, DNDE and FTL, according to the association.

Calls for written procedures and stronger oversight

The associations have sought written standard operating procedures to set out how distributors and OMC field officials should work with each other.

AIHPGDA also called for recorded consent for commercial indents, digital audit trails and an independent mechanism for escalating grievances.

The associations sought reconciliation of OMC records with invoices and GST returns.

They also called for stronger accountability across the supply chain and safeguards for consumer safety.

A five-year roadmap for the LPG distribution network was another demand raised by the associations.

The demands reflect the federations’ broader concern about the viability of the distribution network and the way commercial and operational decisions affect distributors.

FLDI said no indent changes should be made without distributor consent and that non-fuel products should not be pushed on distributors.

The federation said OMCs had assured consideration of these concerns.

The discussions have also covered the need to protect distributors from commercial practices that the associations say are not linked to actual demand.

The federations’ demand for written procedures is intended to address the concerns raised over field-level relations, consent for commercial indents and the handling of grievances.

Delivery commitment remains unchanged

Despite opposing the proposed protest and strike, the federations have reiterated their commitment to uninterrupted household LPG deliveries.

AILDF said it had continued to raise distributors’ concerns with oil companies, the Petroleum Ministry and gas-sector officials while assuring consumers of reliable home delivery.

The federation’s statement placed the delivery commitment alongside its call for meaningful discussions on the demands of distributors.

The federations have stressed that resolving distributors’ financial and operational difficulties is important for maintaining a viable last-mile distribution network.

OMC management acknowledged the dedication of distributors and their staff during the recent crisis, AIHPGDA said.

The management also indicated that a complete return to normal operations would take time, according to the association.

The opposing positions now leave the proposed October 26 dharna and indefinite strike call without the backing of FLDI and AILDF, the two federations that claim membership of most LPG distributors in the country.

At the same time, the federations continue to press the oil marketing companies and the ministry on commissions, operating costs, refill indents, non-fuel product sales and distributor viability.

The immediate outcome sought by the federations is a decision on the commission revision and action on the operational concerns raised during their continuing engagements.

Approval from the petroleum ministry for any commission revision remains pending, while the federations have said they will continue discussions with the oil companies and the ministry.

Source: The Hindu