Tag: Indian Auto LPG Coalition

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With the latest hike in petrol and diesel price in Delhi, this is the right time to make a switch towards the cleaner fuel

Aug 12, 2021 by Rekha Nair 0 Comments #Cabinet Minister for Petroleum, #Director General, #Indian Auto LPG Coalition, #Mr. Hardeep Singh Puri, #Mr. Suyash Gupta

New Delhi: With extreme weather events becoming more frequent the world over, including in India, the urgency to address climate change issues and global warming has never been greater. India in particular has been at the receiving end of these recurring extreme weather conditions. From unexpected and untimely torrential rains to floods to landslides to cyclones, the country has been continually ravaged by a spate of extreme weather events in recent times. Now with the onset of the unlock phases post-second Covid wave and the consequent return of private vehicles back on Indian roads, vehicular pollution, one major contributor to climate change is set to not only test people’s breathing organs but also further upset the already faltering weather cycles in the country. One of the ways to stem this vehicular pollution known for a heavy carbon footprint is to curtail the traditional liquid fuels of petrol and diesel and opt for cleaner alternatives such as auto LPG. Even the newly appointed Cabinet Minister for Petroleum, Mr. Hardeep Singh Puri would have a goal to address the pressing issue of air pollution in the urban areas, making sufficient use of cleaner energy to fight severe weather conditions.

With Delhi in the north, registering record temperatures and rainfall, to Bengal and Odisha suffering devastating cyclones and calamitous floods in the east in Assam, to Maharashtra witnessing both record-breaking droughts and floods in the west, to Hyderabad experiencing record rainfall in 24 hours, and Kerala enduring deadly landslides in the south, there is no part of this country which has been immune to these extreme weather events.

Alarmed by these recurring extreme weather events, Indian Auto LPG Coalition or IAC, the apex body of Auto LPG stakeholders in India has drawn the government’s attention towards the issue suggesting that the mass adoption of auto LPG replacing existing liquid fuels, to be one potent countermeasure towards controlling carbon emissions and thereby moderating the extreme weather phenomena.

“Extreme situations demand extreme and instant measures. With extreme weather conditions becoming an everyday reality impacting millions of Indians regularly now, we must hold the bull by its horns. And a part of the solution lies in addressing the vehicular pollution part of climate change with utmost urgency. For years, the liquid fuels of petrol and diesel have caused immense damage to health and the environment. At a time when cleaner and cheaper alternatives such as auto LPG are readily available, the policy persistence with petrol and diesel is simply inexplicable.

Further, the policy optimism on electric vehicles, something which is technologically and financially still decades away – is misplaced and premature. With the most recent emission tests confirming that the tailpipe emissions from auto LPG are even lesser than BS-VI compliant petrol, the government should not waste any time in giving a policy push to mass adoption of auto LPG. Remember, there are nearly 300 million vehicles, including two-wheelers plying there on Indian roads. While the current scrappage policy and the Green tax must be appreciated, the government needs to do more and do it quickly. In fact, the frequent occurrence of extreme weather events impacting the country must be treated as a due warning. And so the government right away needs to introduce policy incentives such as reducing GST on conversion kits along with subsidy support which would go a long way in ensuring mass conversion of existing vehicles into those that could be used on cleaner alternative fuels. The resultant reduction in air pollution would definitely help to a great extent in stemming the tide of extreme weather events that we have witnessed in the country and beyond in the recent past,” said Mr. Suyash Gupta, Director General, Indian Auto LPG Coalition.

“A credible report by a London-based international relief and the humanitarian agency has revealed that India suffered the highest loss of lives in a single event globally on account of climate change-driven events last year. This is ominous enough. On an equally grim note, the same report not only described cyclone Amphan to be the costliest cyclone of the year but also triggered the biggest displacement due to an extreme weather event anywhere in the world in 2020. These are dire signs and the authorities must take note of these,” further added Mr. Gupta.

Business World, News

Government’s ‘Green Tax’ must be supplemented by incentives to switch to clean fuels

May 18, 2021 by Rekha Nair 0 Comments #Director General, #Indian Auto LPG Coalition, #Mr. Suyash Gupta

New Delhi: With the Government imposing a Green Tax on old polluting vehicles, India’s Auto LPG sector is advocating the need for this deterrent to be accompanied by incentives to people shifting to cleaner alternative fuelssuch as Auto LPG.

The Union Ministry for Road Transport and Highways recently approved a proposal to levy a ‘green tax’ on old vehicles in a bid to curtail pollution and push consumers to switch to environmental-friendly alternatives. Notably, hybrid vehicles and vehicles running on clean alternative fuels such as LPG, CNG and ethanol will be exempt from this tax. The initiative aims to make polluters pay for environmental pollution in India’s choking cities.

While welcoming the move as a step in the right direction, Indian Auto LPG Coalition has suggested that penalisation for polluters be accompanied by reward for users of clean fuels.

“The decision to impose a tax on people using old and polluting vehicles is a highly welcome step as it seeks to penalise the polluters. The move will motivate and push consumers to switch to cleaner alternatives like Auto LPG that can help bring about a significant improvementin air quality. India’s choking cities need to shift a large number of their private vehicles to clean alternative fuels immediately and pushing consumers to switch their existing vehicles to clean alternatives is the quickest way to achieve this. This is why a penalty for polluters must also be accompanied by reward or incentivesfor citizens switching to clean fuels to make it more impactful,” said Mr Suyash Gupta, Director General, Indian Auto LPG Coalition.

Petrol/diesel vehicles includingcars, two-wheelers and three wheelers can easily be converted to Auto LPG or CNG by installing conversion kits. Conversion kits that currently cost up to Rs 25,000 can be made significantly moreaffordable with GST cuts and subsidy support.

Notably, these conversion kits are taxed at a prohibitive GST rate of 28%, a policy that is dichotomous to the government’s commitment to clean energy.

“Rationalising this prohibitive GST rate on conversion kits to 5% has been a long-pendingplea of the Auto LPG sector. Reducing this GST rate will make conversion kits more affordable for mass usage. The government must also consider subsidizing conversion kits for consumers as a move towards incentivizing personal vehicle users to shift to clean gaseous fuels at a mass level. The Green tax on polluting vehicles together with incentives for consumers shifting to clean fuels can have a quick and remarkable effect on India’s urban air quality,”added Mr Gupta.

Auto LPG is the world’s third most widely used automotive fuel which emits almost 50% lesser PM emissions as compared to petrol and up to 80% lesser than diesel. Vehicles using Auto LPG as fuel also emits much lower CO2, making Auto LPG one of themost eco-friendly fuels available today. The Government must also include Auto LPG under the ambit of the city gas distribution project.

Under the green tax being levied by the Ministry for Road Transport and Highways, personal vehicles will be charged with green tax at the time of renewal of registration certification after 15 years. Also, a higher tax of up to 50% of road tax has been proposed for vehicles being registered in highly polluted cities.

Business World

Consumers look for alternative fuels amid rising petrol/diesel prices

Mar 11, 2021 by Neel Achary 0 Comments #Indian Auto LPG Coalition

Consumers look for alternative fuels amid rising petrol/diesel prices: At almost 40% cheaper than petrol, Auto LPG holds much promise

New Delhi: As petrol and diesel reach record high prices, the market is ripe for economical alternative transport fuels such as Auto LPG that can help consumers save fuel costs without compromising on vehicle performance.

Indian Auto LPG Coalition, the apex body representing Auto LPG suppliers in India says Auto LPG which is one of the cleanest and most economical gaseous fuels can emerge as a prominent alternative choice if supported by the right messaging and policy action. Here also lies an opportunity to promote the environment-friendly fuel and bring about improvements in urban air quality.

Petrol prices have in recent weeks been unprecedentedly hovering close to the Rs 100 mark, creating much discomfort among consumers. On the other hand, Auto LPG is priced at almost half of both the mainstream automotive fuels. In terms of running costs, it has consistently been atleast 40% cheaper than petrol. This gives consumers who drive on Auto LPG a major cost advantage. With such a huge cost margin, consumers who chose to convert their vehicles to Auto LPG could recover their investments in conversion kit installation within 6 months, dependent on the Auto LPG price in their city.

“Conversion kit providers are already reporting a rise in queries from consumers looking to convert their personal vehicles to Auto LPG or CNG. With skyrocketing fuel prices putting a major economic burden on consumers’ pockets, more consumers today are scouting for either alternative modes of transport or economical alternative fuels. Herein lies an opportunity to create a behavioral shift towards clean and environment friendly fuels like Auto LPG. A small policy push supported by appropriate messaging can enable a lot of people to convert their personal vehicles to Auto LPG which is the third most widely used automotive fuel globally,” said Mr Suyash Gupta, Director General, Indian Auto LPG Coalition.

Auto LPG comes with the additional benefit of being an environmentally friendly fuel with almost 50% lesser PM emissions than CNG and Petrol and 80% lower PM emissions than Diesel. Vehicles using Auto LPG as fuel also emit much lower CO2, making Auto LPG one of the most eco-friendly fuels on the block.

“What we need is a policy push to encourage consumers to make the clean switch. Unfortunately, Auto LPG/CNG conversion kits are taxed at a prohibitive GST rate of 28%, a policy that is dichotomous to the government’s commitment to clean energy. Cutting down this prohibitive GST rate on conversion kits will make conversion kits more affordable for mass usage. The government must also consider subsidizing conversion kits for consumers as a move towards incentivizing personal vehicle users to shift to clean gaseous fuels at a mass level,” added Mr. Gupta.

Even in terms of price movement, LPG prices do not exactly follow crude pricing since more than 60 percent of global LPG is sourced from gas. And with the amount of LPG which has come onshore after US shale gas came into the picture, the supply scenario has also been very positive. While Electric Vehicles still remain a distant reality, Auto LPG is readily available and can be deployed anywhere without the need for any infrastructure creation. This economic as well as clean fuel can act as a vital bridge between our current fuels and EVs.

Apart from consumers, OEMs who are struggling with an economic downturn can also benefit by investing in Auto LPG variants at this crucial time when consumers are looking to use eco-friendly less cost-effective fuels. With increased availability and continued lower pricing of the fuel, consistently costing almost 50% lesser than the price of Petrol, LPG variants could be the next big star performers in their portfolios.

About IAC:

Indian Auto LPG Coalition (IAC) is the nodal body for the promotion of Auto LPG in India. Members of the Coalition include the Oil Sector PSUs, Private Auto LPG marketers, Kit Suppliers and Equipment Manufacturers. The Coalition works closely with the World LPG Association and Society of Indian Automobile Manufacturers.

IAC is also a member of “Central Motor Vehicle Rules – Technical Standing Committee” (CMVR-TSC) & “Standing Committee on Emission Legislation” (SCOE), TED26 (Bureau of Indian Standards), Government of India.

Business World, News

Incentivize vehicle conversions to clean gaseous fuels: Indian Auto LPG Coalition seeks GST cut on conversion kits

Feb 9, 2021 by Rekha Nair 0 Comments #Director General, #Indian Auto LPG Coalition, #Mr. Suyash Gupta

New Delhi: Ahead of Budget 2021, apex body of Auto LPG stakeholders in India has sought an active intervention from the government to incentivize consumers to convert their in-use vehicles to clean gaseous fuels such as Auto LPG.The body has once again requested for slashing GST on conversion kits along with subsidy support like that available for Electric variants to consumers shifting to environment friendly fuels.

Incentivizing personal vehicle users to shift to clean gaseous fuels at a mass level can have significant air quality benefits apart from boosting the clean transport fuel industry.

Indian Auto LPG Coalition has long held that the prohibitive GST rate of 28% on vehicle conversion kits does not sync with the government’s commitment towards clean energy, particularly at a time when Indian cities are dangerously choking due to hazardous tailpipe emissions.

“While the government has certainly shown a strong commitment to build India’s renewable energy capacity and turn to clean energy sources such as Electric Vehicles, its record on supporting low hanging environment friendly alternative fuels such as Auto LPG could have been so much better.Not only is Auto LPG taxed at 18% GST, conversion kits for Auto LPG/CNG are taxed at a prohibitive 28%. The government must reverse this policy of penalizing clean alternative fuels and announce GST cuts on both Auto LPG and its conversion kits this budget,” said Mr. Suyash Gupta, Director General, Indian Auto LPG Coalition.

A readily available and clean alternative fuel, Auto LPG can help us achieve significant gain in air quality in a short span of time. What we need is a clear policy tilt towards clean alternative fuels and a plan to incentivize vehicle conversions to Auto LPG. Most Petrol Vehicles including cars, two-wheelers and three wheelers can easily be converted to Auto LPG or CNG by installing kits. Conversion kits that currently cost up to Rs 25,000 can be made significantly more affordable with GST cuts and subsidy support. Given the fact that Auto LPG is almost 40% cheaper than petrol, the investment cost is easily recovered within a few months.

“There is a large untapped market for vehicle conversions in India. A large number of consumers are actively looking to switch to cleaner fuels as well as cheaper alternatives to petrol and diesel. Unfortunately, lack of a proactive government policy has not helped matters. Lack of positive government messaging for clean fuels like Auto LPG, complete focus on EVs and absence of policy support prevents a large number of ready consumers from switching their vehicles to clean energy fuels. A positive messaging along with GST cuts and subsidy support for conversion kits can go a long way in inducing a mass shift to clean transport fuels,” added Mr. Gupta.

Auto LPG is the third most widely used automotive fuel used globally after petrol and diesel. It has almost 50% lesser PM emissions than CNG and Petrol and 80% lower PM emissions than Diesel. Vehicles using Auto LPG as fuel also emits much lower CO2, making Auto LPG one of the most eco-friendly fuels available today. Several governments across the world have adopted aggressive policies to encourage consumers to switch to Auto LPG, thereby making significant environment gains. It is interesting to note that while countries like South Korea consume almost 4 million of Auto LPG annually, Indian consumption is languishing at 10 % of that, being just about 0.4 million tonnes.

Tailpipe emissions from petrol/diesel vehicles are a major source of hazardous environmental pollutants emanating from the transport sector. At the same time, rising petrol/diesel prices have in recent months been a major irritant for consumers. Auto LPG is not only environment-friendly, but has also been almost 40% cheaper than petrol consistently. The government must therefore provide a policy climate conducive to the rise and uptake of clean gaseous fuels.

Business World

As COVID 19 gives impetus to alternative fuels, time to push Auto LPG afresh

Jan 13, 2021 by Rekha Nair 0 Comments #Director General, #Indian Auto LPG Coalition, #Mr. Suyash Gupta

New Delhi: With COVID 19 pandemic and its impactgiving a major impetus to sustainability and green recovery goals, alternative transport fuels are expected to receive a boost globally. India’s Auto LPG sector is upbeat about its prospects as rising diesel prices, growing environmental consciousness and delayed EV targets force consumers to look for sustainable alternatives.
From aviation fuels to road transport, the calls for a Green Recovery have been led by prominent voices globally including UN Secretary-General AntónioGuterres who urged India and other countries to shift away from coal and other high carbon fuels and move on a path of sustainable economic growth.

“COVID 19 and its impact have created a ripe situation for clean energy and fuels with a growing global movement pushing for a Green Recovery from this economic turmoil. In India, the economic crisis is expected to push back automobile makers’ EV plans, while rising petrol and diesel prices have forced people to look for more viable and cheaper alternatives. Growing environmental consciousness is also expected to pave way for greater demand of eco-friendly transport fuels. The circumstances create a fertile ground for growth of an eco-friendly and easily deployable fuel like Auto LPG. We are expecting OEMs to look at Auto LPG variants as a low hanging fruit.” says Mr Suyash Gupta, Director General, Indian Auto LPG Coalition.

Directly or indirectly, Covid-19 has triggered the need for the policymakers as well as the automobile industry to contemplate moving away from carbon-based fuels to alternative fuels on a more permanent basis.

The impetus for alternative fuels may not be limited only to India, but a trend seen across the globe. For instance, alternative fuel vehicles have surpassed diesel in the UK for the new car market roiled by Covid-19. Similarly, according to a research report, the global butane (an LPG variant) market is to grow by $13.2 billion in the coming five years.

“Auto LPG is not only environment-friendly, but has also been almost 40% cheaper than petrol consistently. Further, as the government attempts to revive the larger economy and businesses and people get back to everyday regular commuting and travel, there may be a jump in use of personal vehicles over public transport due to the prevalent virus situation. Having a larger number of petrol/diesel cars on roads will be an environmental disaster. The government must therefore provide a policy climate conducive to the rise and uptake of clean gaseous fuels such as auto LPG and CNG,” said MrGupta.

Ever since US shale discovery and the country becoming the largest LPG exporter, the concerns on supply-side security and stable pricing regime have been laid to rest. There is more LPG available today than ever before and at reasonable prices for the end-consumer. In the last ten years, prompted by environmental concerns, auto LPG consumption has surged by nearly 40 percent, a figure only likely to go up post-Covid-19.

However, what thwarts a large scale industry-level promotion; manufacturing and sale of LPG vehicles are certain restrictive policies which continue to cast a shadow on the country-wide uptake and use ofLPG vehicles.As Mr Gupta further elaborates, “The existing high GST rate of 18% on auto LPG and 28% on auto LPG/CNG conversion kits are a huge dampener. Not only this, the need for renewal of conversion kits for Type Approval coming at a high cost every three years inhibits the growth of the retrofitment market. For a fuel which has a Global Warming Potential of ‘zero,’ these policy constraints must be done away with immediately. If we are to retain the environmental benefits of lockdown in the long run, the authorities have to think creatively and pro-actively.”

The outbreak of Covid-19 is just the appropriate propellant for alternative fuels. Andamong alternative fuels, auto LPG holds tremendous promise.

Business World

What about our immediately available clean air solutions?

Dec 5, 2020 by Neel Achary 0 Comments #Director General, #Indian Auto LPG Coalition, #Mr. Suyash Gupta, #National Pollution Control Day

New Delhi: As poor air quality coupled with hazardous smog continues to perpetually choke the capital and other Indian cities, lack of urgency to respond is both frustrating and appalling. With an overwhelming policy thrust on EVs and a complete dearth of focus on immediate clean air solutions, millions of Indians are likely to continue breathing toxic air for years.

As we observe National Pollution Control Day, it is pertinent to note that by banking totally on long term solutions like the EVs, India is missing out on low hanging fruits that can help bring about an immediate difference in air quality. Clean gaseous fuels such as Auto LPG are one such under-utilised solution that can bring about immense benefits to urban air quality by controlling hazardous vehicular tailpipe emissions.

Indian Auto LPG Coalition, the apex body of Auto LPG suppliers in the country, is underlining the need for the government to incentivise vehicle conversions to Auto LPG to be able to leverage an immediate air quality benefit.

“Even though the annual stubble burning process impacts Delhi’s air quality most seriously at the onset of winters, truth is that residents of the capital breathe toxic air for most part of the year. Hazardous vehicular emissions continue to be a major source of poor air quality in urban India. Yet, the fact that policymakers do not display any urgency in addressing the above and focus only on long-term deployment of EVs is frustrating. Lack of use of immediate clean energy solutions such as Auto LPG implies that millions of people have no hope of breathing clean air any time in the near future,” said Mr. Suyash Gupta, Director General, Indian Auto LPG Coalition.

With a bulk of Delhi’s and most Indian cities’ air pollution woes emanating from the transport sector, it is important that well calibrated near and long term measures are initiated to address this problem. The capital and other polluted Indian cities need to shift a substantial part of their private vehicles to cleaner fuels like Auto LPG in the short term until EVs become widely viable. Much like the capital undertook a major transformation drive by converting its DTC buses fleet to CNG 20 years back, another similar transformation drive is needed on personal vehicles and cars.

Tailpipe emissions resulting from vehicles include oxides of nitrogen (NOx), hydrocarbons, carbon monoxide (CO), carbon dioxide (CO 2) as well as particulate matter.

“We already have readily available and clean alternative fuels that can help us achieve significant gain in air quality in a short span of time. With much lower emissions of not only carbon but also nitrogen oxides and particulate matters, Auto LPG is such a readily available alternative to petrol and diesel. What we need is a clear policy tilt towards clean alternative fuels and a plan to incentivise vehicle conversions to Auto LPG.  The government must do this by subsidising conversion costs, reducing GST on Auto LPG as well as on Auto LPG/CNG conversion kits to encourage use of the eco-friendly fuel”, added Mr Gupta.

A policy thrust towards cleaner fuels will also push OEMs towards investing in more Auto LPG variants, offering greater options for consumers.

Auto LPG is the third most widely used automotive fuel used globally after petrol and diesel. It has almost 50% lesser PM emissions than CNG and Petrol and 80% lower PM emissions than Diesel. Vehicles using Auto LPG as fuel also emit much lower CO2, making Auto LPG one of the most eco-friendly fuels on the block. Also, LPG has been classified by United Nations International Panel on Climate Change (UNIPCC) for having a global warming potential of zero, implying that is not a greenhouse gas.

About IAC:

Indian Auto LPG Coalition (IAC) is the nodal body for the promotion of Auto LPG in India. Members of the Coalition include the Oil Sector PSUs, Private Auto LPG marketers, Kit Suppliers and Equipment Manufacturers. The Coalition works closely with the World LPG Association and Society of Indian Automobile Manufacturers.

IAC is also a member of “Central Motor Vehicle Rules – Technical Standing Committee” (CMVR-TSC) & “Standing Committee on Emission Legislation” (SCOE), TED26 (Bureau of Indian Standards), Government of India.