Give auto LPG its rightful place

We would like Budget 2022 to incentivize OEMs enough to quickly launch LPG variants, which would also encourage people to firstly purchase auto LPG vehicles and thus provide immediate relief to the fast deteriorating air quality.

Secondly, the budget must also ensure that auto LPG fuel must be brought down to the GST slab of 5 percent from 18 percent which has been a deterrent factor for both the industry and the end-users.

Thirdly, the government should immediately consider bringing down the LPG conversion kit under the GST tax slab of 5 percent  and not the prohibitive 28 percent currently. In this context, they must also relax the type approval norms with a view to align with the European standards which would galvanize the retrofitment market. The government’s incentivizing EVs through the subsidy route should also be replicated for the auto LPG sector. Auto LPG already has a substantive infrastructure in place, unlike electric vehicles which still require enormous supporting infrastructure. In fact, Budget 2022 is just the right opportunity for the government to give Auto LPG its rightful space in India’s fuel-mix.