New Delhi: The Indian Auto LPG Coalition (IAC) has made a formal request to Nitin Gadkari, Union Cabinet Minister for Road Transport & Highways, stressing the urgent need for the promotion and policy inclusion of Auto LPG as a cleaner and more cost-effective fuel alternative. The coalition’s Director General, Suyash Gupta, sent a letter on 4th July 2024, highlighting the numerous benefits of Auto LPG and its potential contribution to the national clean fuel strategy.
The letter from Suyash Gupta emphasised the environmental, economic, and infrastructural advantages of Auto LPG. Gupta stated that Auto LPG is a “proven, efficient, and environmentally friendly alternative fuel” that can significantly reduce harmful emissions, including CO2 and particulate matter, thereby improving air quality and public health.
Economically, Auto LPG offers substantial cost savings, being approximately 40% cheaper than petrol. Its lower infrastructural costs compared to Compressed Natural Gas (CNG) also make it a viable and scalable option for cleaner fuel infrastructure development across the country. Moreover, from an energy security perspective, Auto LPG ensures a stable supply chain due to diverse import sources, which helps in reducing dependence on any single supplier.
The Indian Auto LPG Coalition has outlined key requests to promote the adoption of Auto LPG as a cleaner fuel. Firstly, the IAC urges the inclusion of Auto LPG vehicles in the national clean fuel policy alongside Electric Vehicles (EVs) and CNG. This step is considered crucial for diversifying India’s clean energy mix and accelerating the transition to cleaner transportation. Secondly, the IAC proposes tax incentives for Original Equipment Manufacturers (OEMs) to encourage the production of Auto LPG variants, which would increase the availability of eco-friendly vehicle options. Lastly, the IAC continues to advocate for reducing the Goods and Services Tax (GST) on Auto LPG from 18% to 5%. This reduction would align Auto LPG’s GST rate with that of domestic LPG, discourage illegal diversion, and make it more affordable.
Suyash Gupta, Director General of Indian Auto LPG Coalition, stated in his appeal, “Auto LPG is a proven, efficient, and environmentally friendly alternative fuel. Its adoption can lead to substantial reductions in harmful emissions, including CO2 and particulate matter, thereby improving air quality and public health. Economically, Auto LPG offers significant cost savings for consumers, as it is approximately 40% cheaper than petrol. Furthermore, its lower infrastructural costs compared to CNG make it a viable and scalable option for cleaner fuel infrastructure development across the country. From an energy security perspective, Auto LPG ensures a stable supply chain due to diverse import sources, reducing dependence on any single supplier.”
Gupta further reiterated the coalition’s confidence in the potential benefits under the Minister’s leadership. “We at the IAC are confident that with Minister Gadkari’s visionary leadership, India can leverage these benefits and position itself at the forefront of the global transition towards sustainable and cleaner transportation solutions. His support will be instrumental in integrating Auto LPG into India’s clean fuel strategy, fostering innovation, and building trust in green technologies.”
The Indian Auto LPG Coalition has been a consistent advocate for cleaner fuel alternatives, engaging with policymakers to include Auto LPG in sustainable development policies. The recent appeal underlines the necessity of supportive fiscal policies that recognise Auto LPG’s role in achieving India’s environmental and economic objectives.
