Starting and running an LPG gas agency might seem to be a very simple and straightforward business for many. But the fact is that it is much more complex and multi-layered. The operation is not only about selling cylinders and handling bookings. It involves logistics, safety protocols, customer service, licensing, and reliable supply chain coordination.
A gas agency acts as a connecting link between gas companies and end-users, making sure households and businesses receive safe and timely gas deliveries. However, many misconceptions exist that can mislead aspiring entrepreneurs or confuse current operators.
Here are some of the most prevalent myths surrounding operating a gas agency, and the truths behind them.
Many people tend to believe that operating a gas agency is purely a matter of administration.
One really needs at least some basic understanding of handling cylinders, leak checking, pressure regulators, and safety in storage. Even if one is not involved with direct handling of the equipment, technical knowledge does contribute towards efficiency and safety in operations.
It is commonly believed that gas agencies do nothing except accept cylinder bookings.
A gas agency is not just there to respond to booking requests; it manages the inventory, vehicle scheduling, compliance with safety standards laid by government bodies, and also maintains regular communications with its customers during other days when no bookings are made.
A widely spread misconception is that starting a gas agency business would immediately bring profits.
Like any other business, a gas agency takes time to generate consistent profits. Factors such as operating costs, delays in delivery, license fees, and even seasonal drops in demand incidences actually drain earnings.
Government-subsidized LPG cylinder prices are cheaper, so for daily use, one would quite naturally rely on that.