28.02.2024: Indian Auto LPG Coalition urges 5% GST, echoing Andhra Pradesh’s VAT cut on Natural Gas

Indian Auto LPG Coalition (IAC) has urged the Central Government to reduce the tax on Auto LPG from 18% to 5% GST in a bid to foster cleaner mobility and combat the escalating climate crisis, This comes in response to Andhra Pradesh’s recent VAT reduction on Natural Gas from 24.5% to 5%, which has significantly lowered CNG prices and is expected to impact other clean automotive fuels like Auto LPG.

Suyash Gupta, Director General of the Indian Auto LPG Coalition, in a company statement, said, “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 fuels, offering a combination of environmental, economic, and operational benefits for vehicle owners and society as a whole.

”The IAC also commended the Ministry of Road Transport and Highways’ (MoRTH) recent proposal to amend the Central Motor Vehicles Rules (CMVR). The proposed amendment aims to streamline and prolong regulations for vehicles retrofitted with Liquefied Petroleum Gas (LPG) kits by extending the validity of type approvals from three to six years. However, vehicles will need to undergo additional performance tests to qualify for this extension

Gupta added, “This is a significant relief as the validity of type approvals has been extended. The industry expresses its gratitude to the Government of India and MoRTH for engaging with us.”

Auto LPG, with its numerous benefits, emerges as a catalyst for positive change in the face of challenges posed by conventional fuels. It emits significantly fewer pollutants compared to conventional gasoline and diesel, resulting in lower levels of harmful emissions such as carbon monoxide (CO), nitrogen oxides (NOx), particulate matter (PM), and hydrocarbons (HC). This contributes to improved air quality and reduced environmental impact of transportation.

In addition to environmental benefits, Auto LPG typically costs less than gasoline and diesel, offering potential savings for vehicle owners. Furthermore, due to its cleaner combustion properties, engines running on Auto LPG may require less frequent maintenance, leading to further cost savings over time.

Auto LPG can be used in a wide range of vehicles, including cars, taxis and two-wheelers. It can be easily integrated into existing gasoline engines with minimal modifications, making it a versatile alternative fuel option.

Source: CNBC TV 18

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