12% growth in May is highest ever monthly sales registered by auto LPG in India

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Auto LPG registers 12% growth in sales in May

Highest ever monthly sales registered by auto LPG in India. Reflects a growing penetration and acceptance of the fuel

The auto LPG sector has continued its impressive growth run this month, with sales figures for May registering a jump of 12% over April 2017. With a volume of more than 34,000 metric tonnes in May, auto LPG also achieved one of its highest ever monthly sales ever since the fuel was introduced in the country.

The sector clocked 34259 MT in May as against 30576 MT in April 2017. Sector received a major boost in October 2016 when auto LPG prices were slashed by the leading government oil companies such as IOC, HPC, and BPC making the fuel about 50 per cent cheaper than petrol. Since then the sales have steadily grown.
In fact, sales jumped by 16 per cent in the period between October 1, 2016 and December 31, 2016. Since December the sales have further jumped by 12 % last month.

Apart from the price reduction, another major contributor to the growth in sales volume has been the increased accessibility of the fuel, with close to 1100 stations across 500 Indian cities and towns.

“The impressive growth figures display an increasing penetration of the fuel and a growing consciousness among the customers about the environment friendly nature of this fuel. Auto LPG is a low hanging fruit and provides a very credible and immediate solution to the government to address the air quality issues in Indian cities. It is highly clean and energy efficient, much cheaper than petrol, diesel and comparable to CNG. However, we are concerned at the Finance Ministry’s proposal to put natural gas at a much lower tax slab as compared to auto LPG. This sends a very wrong message to all the stakeholders, including the OEMs and the consumers, by giving out an impression that the government is opting to choose CNG, rather than letting the consumer decide on the most viable and practical alternate fuel.” says Suyash Gupta, Director General of the Indian Auto LPG Coalition (IAC).

Auto LPG emits up to 120 times lesser particulate emissions than diesel vehicles; 96% lesser nitrogen dioxides (NOx) than diesel; 68% lesser NOx than petrol and significantly lower NOx and HC than CNG. Also, auto LPG emits about 22% lower carbon dioxide (CO2) than petrol which is comparable to the CO2 emissions of CNG. At the same time, it is much cheaper than petrol, diesel and CNG. Unlike CNG, Auto LPG is more viable for installation on two-wheelers. It is to be underlined that emissions from two-wheelers are major culprits for poor urban air quality.

Globally, Auto LPG is the third most commonly used automotive fuel after Petrol and Diesel. Over 26 million vehicles across 70 countries use Auto LPG to help 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.

About IAC:

Indian Auto LPG Coalition (IAC) is the nodal body for the promotion of Auto LPG in India. Members of the Coalition include the Oil Sector PSUs, Private Auto LPG marketers, Kit Suppliers and Equipment manufacturers. The Coalition works very closely with the World LPG Association, Society of Indian Automobile Manufacturers and Automotive Research Association of India.

IAC is also a member of “Central Motor Vehicle Rules – Technical Standing Committee” (CMVR-TSC) & “Standing Committee on Emission Legislation” (SCOE), TED26 (Bureau of Indian Standards), Government of India.

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