Indian Auto LPG coalition urges government to promote auto LPG as clean fuel alternative

The Indian Auto LPG Coalition (IAC) has urged the government to recognize Auto LPG as an environmentally friendly alternative to conventional automotive fuels. In a letter to Bhupender Yadav, Minister of Environment, Forest, and Climate Change, Suyash Gupta, Director General of IAC, emphasised the environmental and economic advantages of adopting Auto LPG.

Gupta noted that Auto LPG, a clean-burning fuel, helps reduce emissions of harmful pollutants such as particulate matter, nitrogen oxides, and carbon dioxide. These reductions contribute to improved air quality and a lower carbon footprint, which aligns with India's environmental goals. According to the IAC, Auto LPG emits 20% less CO2 compared to petrol and 60% less than diesel, while also producing almost no particulate matter and significantly lower nitrogen oxide emissions.

In addition to environmental benefits, Auto LPG offers economic advantages. Gupta highlighted that LPG imports come from multiple sources, providing a stable and secure supply chain for the country. He also pointed out that Auto LPG is around 40% cheaper than petrol, with the cost of converting a petrol vehicle to Auto LPG being approximately Rs 30,000—much lower than the conversion cost for electric vehicles (EVs).

The IAC has been advocating for cleaner fuel alternatives and has actively engaged with policymakers to incorporate Auto LPG into India’s sustainable development strategies. Gupta's letter called for supportive fiscal policies that recognize Auto LPG’s role in addressing the country’s environmental challenges. He noted that the expansion of LPG infrastructure through programs like the Ujjwala Yojana has created a stable supply chain for Auto LPG across the country.

Globally, Auto LPG has seen increased usage, with over 27 million vehicles running on the fuel and 25 million tonnes consumed annually. The IAC is seeking more prominent inclusion of Auto LPG in the national policy framework alongside EVs and CNG. The coalition is also calling for tax incentives to encourage manufacturers to produce Auto LPG variants and has requested a reduction in the Goods and Services Tax (GST) rate on Auto LPG from 18% to 5%, aligning it with the GST rate on domestic LPG.