IAC calls for policy push to scale auto LPG as near-term clean fuel solution

The coalition also pointed to international markets such as Ukraine, Poland, Korea and Russia, where policy support has enabled wider adoption of autogas.

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The Indian Auto LPG Coalition (IAC) has called for greater policy support to promote Auto LPG as part of India’s clean fuel strategy, citing the need for near-term solutions to reduce emissions from the existing vehicle fleet.According to Bloomberg New Energy Finance, India attracted more than $2 billion in climate-focused investments over the past year, driven by demand for clean fuel alternatives and a shift towards lower-emission technologies.IAC said over 33 crore vehicles in India continue to run on petrol and diesel, contributing to urban air pollution. It argued that transitioning this fleet will require solutions that can be deployed quickly without waiting for new infrastructure.“India stands at a crossroads in its battle against air pollution and climate change, as well as in the urgent pursuit of Net Zero and national energy security. With over 33 crore petrol and diesel vehicles on our roads, an outright ban or phase-out is not feasible in the short term,” said Suyash Gupta, Director General, IAC.

“By incentivising and streamlining retrofitment to Auto LPG, we can convert millions of vehicles into clean, low-emission alternatives almost overnight,” Gupta added.

The coalition has recommended reducing the goods and services tax on LPG conversion kits from 28 per cent to 5 per cent, alongside measures to encourage original equipment manufacturers to introduce more LPG variants.

Role as a transitional fuel

IAC said Auto LPG is used in over 27 million vehicles globally, including 2.4 million in India. It added that the fuel can be deployed using existing distribution infrastructure and does not require a large upfront investment compared with electric mobility.“Auto LPG is not only cost-effective for consumers but also delivers immediate, significant reductions in harmful emissions,” Gupta said.The coalition also pointed to international markets such as Ukraine, Poland, Korea and Russia, where policy support has enabled wider adoption of autogas.

IAC said incorporating Auto LPG into India’s clean fuel framework could help address near-term emissions while longer-term solutions, such as electrification, continue to scale.