Indian auto LPG coalition appeals for level playing field for auto LPG

Indian Auto LPG Coalition (IAC) has appealed to the Prime Minister to endorse Auto LPG as an environmentally friendly alternative fuel and provide a level playing field.

In his letter, Suyash Gupta, Director General of Indian Auto LPG Coalition, highlighted the substantial environmental and economic benefits of adopting Auto LPG over traditional fuels.

Gupta in his letter stated, "Auto LPG offers significant environmental advantages, emitting 20 % less CO2 than petrol and 60 % less than diesel. It produces almost no particulate matter, a major contributor to air pollution, and has significantly lower nitrogen oxide emissions. Regarding energy security, India imports LPG from multiple countries, ensuring a stable and secure supply chain, which contributes to energy independence."
"Additionally, Auto LPG is around 40 % cheaper than petrol, and the conversion cost for a petrol vehicle to Auto LPG is approximately Rs 30,000, significantly lower than the costs for an EV and even the conversion costs for CNG."

Indian Auto LPG Coalition has been a strong advocate for cleaner fuel alternatives, engaging with policymakers to integrate Auto LPG into the sustainable development framework. Gupta emphasized the need for supportive fiscal policies that recognize Auto LPG's role in achieving India's environmental and economic goals.

He added, "Huge success of the Ujjwala Yojana has improved LPG infrastructure availability across the country, ensuring a stable supply chain for Auto LPG. Globally, Auto LPG has seen substantial growth, with over 27 million vehicles using it and 25 million tonnes consumed annually."

The IAC calls for greater inclusion of Auto LPG in the national policy framework for cleaner fuels, alongside the EVs and CNG.

They propose tax incentives and benefits to encourage Original Equipment Manufacturers (OEMs) to produce Auto LPG variants.

Furthermore, they suggest reducing the GST rate on Auto LPG from 18 % to 5 % to make it more affordable and align it with the GST rate on domestic LPG.