LPG distributors have sought a revision in commissions, permission to issue fresh connections and a balanced approach to piped natural gas (PNG) expansion during an interaction with Union Petroleum Minister Hardeep Singh Puri on Friday.

Two industry executives who attended the meeting told The Hindu that distributors flagged rising operational costs amid declining refill sales as PNG gains ground.

“Our federation was encouraged by [Union Petroleum] Minister who heard our concerns at length. We told him that technological interventions as delivery authentication code (DAC) and e-KYC have made the overall mechanism cleaner,” an attendee said.

They said refill sales had suffered amid the PNG push, while commissions, last revised in October 2023, remained unchanged despite rising technology and safety costs.

“However, what has also happened is that refill sales have suffered amidst the PNG push and as a result, with [distributor] commissions not revised, our operational margins, be it for the requisite technology and safety have gone up,” they said.

Distributors also sought a “balancing act” between PNG and LPG, arguing that consumers should retain the freedom to choose. They urged the Ministry to allow fresh LPG connections, particularly in areas yet to be reached by PNG.

The Hindu has sought the government’s response.