By: Suyash Gupta, Director General, Indian Auto LPG Coalition
India’s rapid urbanization 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 recognized 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%, categorizing 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.
- Subsidizing 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.
- Incentivizing 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 standardized training and certification programs for technicians installing Auto LPG conversion kits would ensure safety and reliability, boosting consumer trust.
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.