Auto LPG could be a game changer in reducing emissions with appropriate fiscal incentives: IAC Director – ET Auto

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Auto LPG could be a game changer in reducing emissions with appropriate fiscal incentives: IAC Director – ET Auto


The disparity in GST rates between Auto LPG and EVs, which enjoy heavy subsidies, creates a financial barrier for consumers and businesses considering the switch to Auto LPG.

New Delhi: In a significant push towards enhancing the adoption of cleaner and more cost-effective alternative fuels in India, Suyash Gupta, Director General of the Indian Auto LPG Coalition (IAC), has made a strong appeal to the Finance Ministry to incentivize Auto LPG. This appeal focuses particularly on encouraging Original Equipment Manufacturers (OEMs) to produce Auto LPG variants, aiming to level the playing field for Auto LPG in the competitive Indian market.In his appeal, Gupta highlighted the substantial environmental and economic benefits that Auto LPG offers over traditional fuels. Noted for its clean-burning properties, Auto LPG significantly reduces emissions of particulate matter, nitrogen oxides, and carbon dioxide, thereby contributing to improved air quality and reducing the overall carbon footprint of the nation. Emphasizing its environmental credentials, Gupta remarked, “Auto LPG is not only an environmentally friendly alternative but also a cost-effective solution for consumers and the government alike.”

Gupta also proposed specific fiscal measures to boost the adoption of Auto LPG. “By reducing the GST on Auto LPG, and also encouraging the OEMs to rollout more LPG variants through fiscal incentives on the lines of those for EVs, we can make this cleaner fuel more accessible to the masses, encouraging its adoption and supporting the transition to a more sustainable energy future,” he stated. Currently, Auto LPG is subject to a higher GST rate of 18%, which Gupta argues should be reduced to 5% to foster greater adoption and support the auto industry’s shift towards greener technologies.

The disparity in GST rates between Auto LPG and electric vehicles, which enjoy heavy subsidies, creates a financial barrier for consumers and businesses considering the switch to Auto LPG. Addressing this issue, Gupta pointed out, “Approximately 330 million vehicles in the country currently operate on environmentally harmful liquid fuels. Auto LPG presents a compelling alternative to traditional gasoline and diesel, offering significant environmental, economic, and operational benefits for both vehicle owners and society.”

With a call to action, Gupta urged the Finance Ministry to take into consideration the potential benefits of such fiscal incentives: “With the right fiscal policies, Auto LPG can play a crucial role in reducing vehicular emissions and driving economic savings for consumers. We urge the Finance Ministry to consider our appeal for a GST reduction, which will significantly contribute to our shared vision of a cleaner and greener India.”

The Indian Auto LPG Coalition has been at the forefront of advocating for cleaner fuel alternatives in India, consistently engaging with policymakers to ensure the strategic inclusion of Auto LPG in the country’s broader sustainable development and policy framework.

  • Published On Jun 25, 2024 at 03:53 PM IST

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