default-banner

 May 26, 2025

Policy Reforms for Promoting Auto LPG as a Sustainable Fuel in India

Suyash Gupta, Director General of the Indian Auto LPG Coalition, emphasizes the critical role of R&D investment in advancing Auto LPG technology to make it more efficient and user-friendly. With India facing severe air pollution challenges, Auto LPG offers a cleaner, cost-effective alternative to traditional fuels, but widespread adoption depends on strategic policy reforms, infrastructure expansion, and public awareness.

[object Object]

Investing in R&D can lead to advancements in Auto LPG technology, making it more efficient and user-friendly, says Suyash Gupta, Director General, Indian Auto LPG Coalition.

India's rapid urbanisation and industrial growth have led to significant environmental challenges, particularly concerning air pollution, with New Delhi often cited as one of the most polluted capital cities globally. Vehicular emissions are a major contributor to deteriorating air quality, necessitating the exploration of cleaner alternative fuels. While India's commitment to achieving net-zero emissions status by 2070 and lowering its emission intensity by 45% from 2005 levels by 2030 is laudable, strategic measures need to be taken to achieve the ambitious goal. The commitment involves a 1 billion tonne reduction in projected carbon emissions by 2030. Auto Liquefied Petroleum Gas (Auto LPG) emerges as a viable and sustainable option but to promote its widespread adoption, comprehensive policy reforms are essential.

Environmental and economic benefits of Auto LPG

Auto LPG is recognised globally for its environmental advantages over traditional fuels like petrol and diesel. The third most widely used automotive fuel globally, Auto LPG is an easily adaptable and readily available fuel that presents a compelling case as the ‘Net Zero Hero’.Vehicles powered by Auto LPG emit significantly lower levels of nitrogen oxides (NOx), particulate matter (PM), carbon monoxide (CO), and hydrocarbons (HC). Notably, NOx emissions from Auto LPG are 90% lower than diesel and 60% less than petrol, making it a cleaner alternative. Additionally, Auto LPG is approximately 40% cheaper than petrol, offering substantial cost savings to consumers.

Policy reforms needed to promote Auto LPG

  • Reduction in GST Rates: Currently, Auto LPG is subjected to an 18% Goods and Services Tax (GST), while electric vehicles (EVs) benefit from a lower tax rate. Conversion kits for Auto LPG are taxed at an even higher rate of 28%, categorising them alongside luxury or demerit goods. Aligning the GST rate for Auto LPG and its conversion kits with that of EVs, possibly reducing it to 5%, would make it more affordable and encourage adoption.
  • Subsidising Conversion Kits: The high cost of conversion kits is a barrier for consumers considering the switch to Auto LPG. Providing subsidies or financial incentives for these kits would lower the initial investment required, making the transition more appealing.
  • Incentivising Vehicle Manufacturers: To expand consumer choices, the government should provide incentives to Original Equipment Manufacturers (OEMs) to produce factory-fitted Auto LPG vehicles. Consistent incentives would encourage OEMs to develop and market more LPG variants, enhancing public mobility fuel options.
  • Expanding Refueling Infrastructure: Reportedly, demand for vehicles powered by traditional fuels such as petrol and diesel is progressively shifting towards those that utilise alternative fuels. There's a growing interest in Electric Vehicles (EVs), Compressed Natural Gas (CNG), Liquid Petroleum Gas (LPG), and hybrid models. However, despite advancements, the insufficient infrastructure for charging and fueling remains a significant obstacle to wider adoption.A robust network of Auto LPG refueling stations will make it add to consumers’ convenience and boost their confidence. Policies that encourage the establishment of more refueling points, especially in urban areas, would support and accelerate the fuel's adoption.
  • Public Awareness Campaigns: Educating the public about the environmental and economic benefits of Auto LPG on one hand and about the adverse health effects of air pollution on the other hand is essential for bringing about the desired behavioral change. Government-led campaigns can dispel myths and highlight the link between vehicular emissions and air quality degradation, encouraging individuals to make environmentally conscious choices. Encouraging alternatives such as public transportation, cycling, and carpooling can help reduce the reliance on personal vehicles and mitigate emissions.
  • R&D Support and Training: Investing in R&D can lead to advancements in Auto LPG technology, making it more efficient and user-friendly. Government grants and partnerships with academic institutions can drive innovation in this sector. Coupled with this, establishing standardised training and certification programs for technicians installing Auto LPG conversion kits would ensure safety and reliability, boosting consumer trust.
Mr Suyash Gupta
Mr Suyash Gupta

Final thoughts

Promoting Auto LPG as a sustainable automotive fuel in India requires a multifaceted approach, encompassing fiscal incentives, infrastructural development, and public engagement. By implementing these policy reforms, India can make significant strides toward reducing vehicular emissions, improving air quality, and providing cost-effective fuel alternatives to its citizens.

Mr Suyash Gupta has been at the forefront of promoting clean auto fuel in India for the past 17 years, both as Director General of the industry body, Indian Auto LPG Coalition, and Managing Director of CleanFUEL India. 

A Bachelor of Business Administration from Thames Valley University, London, Mr Gupta is a member of the Global Steering Committee of ‘Cooking for Life’ initiative promoting use of cleaner fuels and represents India on the Core GAIN Group of World LP Gas Association at Paris.

A former consultant to National Energy Technology Laboratory, US Department of Energy, Mr Gupta is also a member of apex committees of Union Ministry of Road Transport & Highways, Government of India, being a member of Standing Committee on Emission Legislation (SCoE) & Central Motor Vehicle Rules (Technical Standing Committee) (CMVR-TSC).

In this role, he has authored several articles, chaired key sessions, traveling extensively to present papers on Indian LPG Scenario across several cities in the US, the UK, Germany, France, Poland, Japan and many other countries.

At a personal front, Mr Gupta is an avid classical music devotee and a performer of Kasur Patiala rendition of Indian Classical Music.