With the government ready to implement the GST regime, the Indian Auto LPG Coalition (IAC) has urged revisions in duties to bring domestic and commercial LPG under uniform tax rates to encourage usage auto LPG.
This step will also help prevent diversion of domestic fuel for commercial use, IAC said.
Auto LPG is an eco-friendly automotive fuel and much cheaper than petrol and diesel and very comparable to CNG.
A highly energy efficient fuel, auto LPG can be ready and available solution to reducing pollution levels in Indian cities.
Suyash Gupta, Director General of the Indian Auto LPG Coalition, said the duties on commercial LPG are much higher than domestic LPG. In fact, there is zero custom and excise duty on domestic LPG and minimal VAT, while the same are cumulatively as high as 12-15% on commercial LPG.
At the same time, Gupta claimed that users also enjoy a subsidy on domestic LPG cylinders. This presents several problems like domestic LPG cylinders are often diverted for commercial use in vehicles, which is highly unsafe and allows a misuse of subsidy.
Also higher tax rates make auto LPG a less attractive option, when its use needs to be encouraged by all means.
Auto LPG emits up to 120 times lesser particulate emissions than diesel vehicles; 96 percent lesser nitrogen dioxides (NOx) than diesel; 68 percent lesser NOx than petrol and significantly lower NOx than CNG.
Also, auto LPG emits about 22 percent lower carbon dioxide (CO2) than petrol which is comparable to the CO2 emissions of CNG.
Globally, Auto LPG is the third most commonly used automotive fuel after Petrol and Diesel.
Over 26 million vehicles across 70 countries are driven by Auto LPG, helping clean their urban environment.
Globally seven of the ten largest car manufacturers produce LPG powered cars. The use of LPG as an automotive fuel became legal in India with effect from April 24, 2000. Since then more than 500 cities have been covered by Auto LPG with more than 1100 stations.