IAC Urges Auto LPG Inclusion in Clean Fuel Policy

The Indian Auto LPG Coalition has called on policymakers to formally include Auto LPG in India’s clean fuel strategy, highlighting its potential to reduce emissions from the country’s large petrol and diesel vehicle fleet. The appeal comes at a time when climate focused investments in India have crossed 2 billion dollars, underscoring growing momentum toward cleaner mobility solutions.

The coalition argues that Auto LPG can serve as a practical transition fuel for millions of existing vehicles without requiring large scale infrastructure changes.

Auto LPG pushed as near term emission reduction solution

India currently has over 33 crore petrol and diesel vehicles on the road, which remain a major contributor to urban air pollution. The Indian Auto LPG Coalition believes that retrofitting these vehicles is a faster way to cut emissions compared to long term electrification alone.

Auto LPG is already the third most widely used transport fuel globally, powering over 27 million vehicles, including around 2.4 million in India. The coalition says this existing adoption proves its scalability and readiness for wider use.

The group has outlined its key policy demands to accelerate adoption, including:
 

• inclusion of Auto LPG in India’s clean fuel policy discussions
• encouragement for OEMs to introduce more LPG compatible vehicle variants
• reduction of GST on LPG conversion kits from 28 percent to 5 percent
• positioning retrofit solutions as a low cost method to convert existing petrol and diesel vehicles at scale
• reducing dependency on heavy infrastructure buildout compared to EV charging expansion
• enabling faster near term emission reduction from the existing vehicle fleet

Retrofit solutions are being positioned as a practical and affordable option for converting existing vehicles into lower emission alternatives without requiring heavy infrastructure expansion.

The coalition also cited global adoption examples such as Ukraine, Poland, South Korea, and Russia, where supportive policy frameworks have helped integrate Autogas into mainstream transport systems and achieve measurable emission reductions.

Climate investment rise strengthens clean fuel push

The appeal comes amid rising climate focused investment in India, which has crossed 2 billion dollars according to Bloomberg New Energy Finance. Despite this momentum, the majority of India’s vehicle fleet still relies on petrol and diesel fuel.

Suyash Gupta, Director General of the Indian Auto LPG Coalition, stated that India cannot realistically phase out its entire existing vehicle base in the short term. He emphasized that structured retrofit policies could convert millions of vehicles into lower emission alternatives quickly and cost effectively.

He further noted that Auto LPG can support cleaner cities, improve air quality, and strengthen India’s energy security while aligning with net zero goals.

Conclusion

The Indian Auto LPG Coalition’s proposal highlights the growing debate around transitional clean fuel solutions in India. By pushing for policy support, fiscal incentives, and wider adoption, the industry body aims to position Auto LPG as a practical bridge between conventional fuels and long term electric mobility goals.