LPG distributors protest in Delhi over commission rates, e-KYC-related connection suspensions and PNG-area supply rules, seeking government action within a month
NEW DELHI, October 26, 2026: LPG distributors have called for changes to government policies affecting their businesses and consumer connections after more than 4,000 distributors reportedly joined a protest at CBD Ground in New Delhi.
The demonstration, organised by the LPG Distributors Association (India), focused on commission rates, restrictions involving LPG supplies in areas with piped natural gas (PNG) infrastructure, e-KYC-related connection suspensions and operational disputes with oil marketing companies.
The association has given the government one month to address its demands and warned of a possible nationwide strike.
LPG Connection Policy Comes Under Scrutiny
One of the main concerns raised by the association was the government’s March 24, 2026, order concerning LPG supplies in areas where PNG infrastructure is available.
B. S. Sharma, national president of the LPG Distributors Association (India), argued that the policy could affect LPG distributors’ business prospects, particularly in areas where private companies are expanding piped gas networks.
The association has also raised concerns about consumer choice and called for a review of the policy’s impact on households and distributors.
Association Questions e-KYC-Related Suspensions
The protest highlighted the reported suspension of around 3.16 crore LPG connections over incomplete electronic know-your-customer verification.
Sharma questioned the rationale behind the reported restrictions and cited the Supreme Court’s judgment in K. S. Puttaswamy v. Union of India while raising concerns about biometric verification requirements.
However, the association’s figure and interpretation of the legal issues require independent verification. Further information would be needed to establish the exact number of affected connections, the reasons for suspension and the applicable verification requirements.
Commission Dispute Remains a Key Demand
The association also renewed its demand for a comprehensive revision of distributor commissions, an issue it says has remained unresolved since 2018.
Sharma argued that increases in LPG prices and operating costs had not been matched by an adequate adjustment in commissions. He cited changes in domestic and commercial LPG prices as evidence of the financial pressure facing distributors.
He also referred to interim relief provided in 2022 but said distributors were still waiting for a comprehensive revision.
Allegations Against Oil Marketing Companies
Distributors raised concerns about their dealings with officials of oil marketing companies. The association alleged that changes to distributor indents could affect supply quantities and result in financial losses.
It also claimed that distributors faced pressure to sell additional products, including gas stoves, rubber tubes, lighters and aprons.
These allegations were raised by the association during the protest and would require responses from the companies concerned for a complete assessment.
Protest Organisers Cite Access Difficulties
Sharma alleged that barricades and restrictions on public transport and access around CBD Ground prevented some distributors from reaching the demonstration.
He said the arrangements had created difficulties for participants who had travelled from different parts of the country to attend the protest.
Government Given One Month to Respond
The LPG Distributors Association (India) has called for action on commission revisions, connection policies and operational grievances within one month.
Sharma warned that a nationwide strike could follow if the government did not address the demands within the stated deadline.
The association said it remained open to dialogue and wanted the government to provide a time-bound response to the issues raised by distributors.
