Auto LPG adoption
Auto LPG significantly lowers emissions of harmful pollutants such as particulate matter, nitrogen oxides, and carbon dioxide. Gupta highlighted that Auto LPG emits 20% less CO2 compared to petrol and 60% less than diesel. He noted, "Auto LPG produces almost no particulate matter, a major cause of air pollution, and has significantly lower nitrogen oxide emissions."
The Indian Auto LPG Coalition has long advocated for cleaner fuel alternatives and actively collaborates with policymakers to integrate Auto LPG into India's sustainable development framework. Gupta stressed the necessity for supportive fiscal policies that recognise Auto LPG's contributions to environmental and sustainable development goals.
Recommendations by IAC
The IAC is urging the national policy framework to include Auto LPG more visibly alongside electric vehicles (EVs) and compressed natural gas (CNG). The coalition proposes tax incentives and benefits to encourage Original Equipment Manufacturers (OEMs) to produce Auto LPG variants. Additionally, they request a reduction in the Goods and Services Tax (GST) rate on Auto LPG from 18% to 5%, aiming to make it more affordable and aligning it with the GST rate on domestic LPG.
The recommendation seeks to popularise Auto LPG by making it economically attractive for both consumers and manufacturers. The move could further bolster India's commitment to cleaner fuels and reducing environmental impacts, aligning with international environmental goals.
Stable supply chain
From an energy security standpoint, India imports LPG from several countries, ensuring a reliable and stable supply chain, contributing to energy independence. Additionally, Auto LPG is around 40% cheaper than petrol, and the cost to convert a petrol vehicle to Auto LPG is approximately INR 30,000. This conversion cost is notably lower than that for electric vehicles (EVs).
"The 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," Gupta stated.
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