The Indian Auto LPG Coalition (IAC) on Monday urged the Finance Ministry to reduce the GST rate on auto LPG from the current 1,g18 per cent to 5 per cent, which will help in curbing illegal diversion and male them more affordable for consumers.

The industry body made a fervent appeal to the Ministry to also incentivise auto LPG and encourage Original Equipment Manufacturers (OEMs) to produce Auto LPG variants.

IAC Director General Suyash Gupta said “Auto LPG is not only an environmentally friendly alternative but also a cost-effective solution for consumers and the government alike. 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.”

Currently, auto LPG is subjected to a high GST rate, whereas the EV adoption today remains heavily subsidised. This disparity creates a barrier for consumers and businesses considering the switch to Auto LPG, he added.

Gupta also highlighted the significant environmental and economic benefits of adopting auto LPG over traditional fuels. As a clean-burning fuel, auto LPG produces substantially lower emissions of harmful pollutants such as particulate matter, nitrogen oxides, and carbon dioxide.

This not only contributes to improved air quality but also reduces the nation’s carbon footprint, making auto LPG a true Net Zero Hero and aligning with India’s commitments under international environmental agreements.

“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,” Gupta noted.

With the right fiscal policies, auto LPG can play a crucial role in reducing vehicular emissions and driving economic savings for consumers.