IAC Calls for Auto LPG Inclusion in India's Clean Fuel Policy as Climate Investment Crosses $2 Bn

The Indian Auto LPG Coalition (IAC) urged policymakers in New Delhi on April 10, 2026, to include Auto LPG in India's national clean fuel strategy, citing the scale of petrol and diesel vehicle use and the fuel's existing global deployment as reasons for immediate adoption.

The IAC's push comes against the backdrop of India attracting more than $2 billion in climate-focused investment over the past year, according to Bloomberg New Energy Finance. Despite this, over 33 crore vehicles in India continue to run on petrol and diesel, which the coalition identifies as a primary source of urban air pollution.

Auto LPG is currently the third most widely used transport fuel globally, powering over 27 million vehicles worldwide, including 2.4 million in India. The IAC argues that retrofitting existing petrol and diesel vehicles to run on Auto LPG can deliver near-term emission reductions without requiring the infrastructure investment that electric vehicle adoption demands.

The coalition has put forward three specific policy asks: inclusion of Auto LPG in clean fuel discussions, encouragement for OEMs to introduce more LPG vehicle variants, and a reduction in GST on LPG conversion kits from 28% to 5%.

Suyash Gupta, Director General, Indian Auto LPG Coalition, said, "India stands at a crossroads in its battle against air pollution and climate change, as well as in the urgent pursuit of Net Zero and national energy security. With over 33 crore petrol and diesel vehicles on our roads, an outright ban or phase-out is not feasible in the short term. By incentivizing and streamlining retrofitment to Auto LPG, we can convert millions of vehicles into clean, low-emission alternatives almost overnight. Auto LPG is not only cost-effective for consumers but also delivers immediate, significant reductions in harmful emissions, making our cities healthier and our air cleaner, while supporting the nation's Net Zero ambitions and strengthening India's energy security framework."

He added, "The government must prioritize clean fuel policies and support retrofitment initiatives for a sustainable, practical transition that advances India's climate and energy goals."

The IAC pointed to Ukraine, Poland, South Korea, and Russia as countries that have integrated Autogas into their transport systems through supportive policy and fiscal incentives, resulting in measurable emission reductions. The coalition is a nodal body for Auto LPG promotion in India and works alongside the World LPG Association, the Society of Indian Automobile Manufacturers, and government technical committees including CMVR-TSC and SCOE.