Economy

Auto LPG group calls for GST reduction, subsidy on conversion kits

Our Bureau New Delhi | Updated on March 30, 2021

Auto LPG is priced at almost half of both the mainstream automotive fuels   -  The Hindu

LPG-fuelled vehicles account for only a fraction of the pollution caused by even those petrol vehicles that comply with the latest Bharat Stage-VI emissions standards, according to tests conducted by Indian Auto LPG Coalition (IAC) industry group.

The group, which counts Indian Oil, Hindustan Petroleum, and Reliance Industries among members, has called for a reduction of GST rate as well as subsidy on conversion kits.

The tests compared petrol and auto LPG emissions across the key BS-VI parameters — carbon monoxide (CO), total hydrocarbons (THC), non-methane hydrocarbons (NmHC) and oxides of nitrogen (NOx). Auto LPG was found to emit almost 52 per cent less CO, 47 per cent less THC and 50 per cent less NmHC compared to the petrol vehicles, IAC said in a statement on Tuesday.

Passenger vehicles, including cars, two-wheelers, or three-wheelers, can switch to auto LPG by installing conversion kits.

“While petrol prices have been hovering close to the ₹100 mark, auto LPG is priced at almost half of both the mainstream automotive fuels,” the statement said. “Consumers who choose to convert their vehicles to auto LPG could recover their investments in conversion kit installation within 6 months, depending on the auto LPG price in their city,” they added.

The group, which counts Indian Oil, Hindustan Petroleum, and Reliance Industries among members, has called for a reduction of GST rate as well as subsidy on conversion kits.

“As skyrocketing fuel prices put a major economic burden on consumers, herein lies an opportunity to create a behavioral shift towards auto LPG,” Suyash Gupta, Director General, IAC, said in the statement. “Reducing the prohibitive GST rate of 28 per cent on conversion kits and subsidising kit costs for consumers can bring about a wide clean switch, impacting our air almost immediately.”

“Until electric vehicles become viable commercially and infrastructure-wise, we need clean fuel to act as a bridge between a petrol-driven present and an electric future. Auto LPG is best suited to act as that bridging fuel,” he added.

Published on March 30, 2021

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