GST Reduction, Conversion Kit Subsidy to Boost Auto GPL Growth, Energy News, ET EnergyWorld

New Delhi: A reduction in GST rates on automotive LPG and subsidies on conversion kits may boost the use of LPG as a fuel in automobiles, the Indian Auto LPG Coalition (IAC) said on Tuesday, stressing the need to recast the blend of vehicle fuels with a greater share of cleaner alternatives. In a statement, the IAC, the hub body and a leading advocate for cleaner, greener fuels, said that alongside the temporary benefits accrued during the shutdowns, a number of recent studies have highlighted how the air pollution must remain a major concern for the country.

“Not only is automotive LPG 40-50% cheaper than carbon-based gasoline and diesel, but its emissions are also negligible compared to conventional fuels. Thus, the adoption of automotive LPG leads to cleaner air. pure and cleaner environment, health burden and lower mobility costs, ”he said.

He cited a Greenpeace report last month to say that the eight most populous state capitals experienced an increase in nitrogen dioxide (NO2) levels between April 2020 and April 2021, overturning the improvement thesis of air quality allegedly motivated by the lockdown.

Since NO2 is one of the main products of vehicle pollution, there is an urgent need to once again draw attention to the vehicle fuel policy in the country, he said.

“For some time now, we have been urging the government to adopt a fuel policy for vehicles that would reflect the reality of the still persistent and even deteriorating levels of air pollution in our country, especially in urban areas,” said Suyash Gupta, director. General, IAC.

Among the eight cities highlighted in the Greenpeace report, Delhi recorded the maximum increase in NO2 levels to 125% between April 2020 and April 2021.

“Another report from the CSE found higher pm 2.5 levels in January-March 2021 than the same months in the previous two years,” he said.

Stating that the government must immediately rethink its vehicle fuel policy, Gupta said an immediate shift of automotive LPG from the high 18% TPS slab to the modest 5% slab is needed.

Likewise, the government would also need to subsidize market rates for LPG auto conversion kits by removing them from the prohibitive 28 percent GST slab at the lower slabs.

“Combined with the relaxation of type approval standards governing the conversion to gaseous fuels, the resulting push into the retrofit market would be a much needed stimulus for the growth of automotive LPG adoption in the country,” said he added.