IAC urges govt to include auto LPG in national clean fuel policy

New Delhi: The Indian Auto LPG Coalition (IAC) has written a letter to the Minister for Road Transport & Highways, Nitin Gadkari, calling for a more pronounced role for auto LPG in the national clean fuel policy, alongside Electric Vehicles (EVs), Compressed Natural Gas (CNG). The coalition has emphasised the urgent need for the promotion of auto LPG as a cleaner and more cost-effective fuel option. And it has also called for reducing the Goods and Services Tax (GST) on auto LPG from 18 percent to 5 percent in promote the adoption of the fuel.

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In a letter on July 4, IAC’s Director General, Suyash Gupta, highlighted the numerous benefits of auto LPG and its potential contribution to the national clean fuel strategy. Gupta said 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.

Auto LPG 40% cheaper than petrol: IAC

Economically, auto LPG offers substantial cost savings, being approximately 40 percent cheaper than petrol, said the IAC. “Its lower infrastructural costs compared to 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 coalition said in the letter.

IAC requests govt to include auto LPG in national clean fuel policy

The Indian Auto LPG Coalition has outlined key requests to promote the adoption of Auto LPG as a cleaner fuel. Firstly, the IAC has urged 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,” it said.

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 called for reducing the GST on Auto LPG from 18 percent to 5 percent. “This reduction would align auto LPG’s GST rate with that of domestic LPG, discourage illegal diversion, and make it more affordable,” said the IAC.

Gupta said, auto LPG’s “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.”

“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.”

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