IAC Advocates Auto LPG Adoption Amid India's Growing Clean Mobility

According to Bloomberg New Energy Finance (BNEF), India is emerging as a global frontrunner in climate-focused investments, attracting more than $2 billion in sustainable capital over the past year. 

This surge is propelled by the rising demand for clean fuel alternatives and a significant industry pivot toward zero-emission technologies across the nation.

In this rapidly changing landscape, access to diverse clean fuels is essential for India’s journey to a greener future.

Recognizing this opportunity, the Indian Auto LPG Coalition (IAC) is urging policymakers to prioritize Auto LPG (Autogas) as an essential component of India’s clean fuel strategy. With more than 33 crore vehicles still running on petrol and diesel, it continues to be a key source of urban air pollution.

There is an urgent need for quick-impact solutions that can deliver immediate environmental benefits. Auto LPG, the third most widely used transport fuel globally, is already proven in this role, fueling over 27 million vehicles worldwide and 2.4 million in India alone.

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

Auto LPG is not only cost-effective for consumers but also delivers immediate, significant reductions in harmful emissions, making our cities healthier and our air cleaner, while supporting the nation’s Net Zero ambitions and strengthening India’s energy security framework,” said Suyash Gupta, Director General, Indian Auto LPG Coalition.

Auto LPG’s benefits are compelling: it reduces emissions of carbon dioxide, nitrogen oxides, and particulate matter, key pollutants affecting urban health, while offering better fuel economy and lower running costs compared to petrol and diesel.

Unlike electric vehicles, which require heavy infrastructure and longer adoption cycles, Auto LPG can leverage existing distribution networks and offers immediate air quality improvement at minimal new investment.

“The government must prioritize clean fuel policies and support retrofitment initiatives for a sustainable, practical transition that advances India’s climate and energy goals,” Gupta further added.

Globally, nations like Ukraine, Poland, Korea, and Russia have successfully integrated Autogas into their transportation systems, backed by supportive policies and fiscal incentives that led to significant emission reductions. IAC calls on Indian lawmakers to adopt similar visionary measures, urging the inclusion of Auto LPG in the clean fuel conversation, encouragement to OEMs to roll out more LPG variants, and a reduction of Goods and Services Tax (GST) on LPG conversion kits from 28-5 percent. Such reforms will make clean fuel more accessible and affordable, expediting India’s shift to sustainable mobility.

As climate capital continues to flow into India, immediate and scalable solutions like Auto LPG will be crucial in balancing both long-term environmental goals and the present-day realities of India’s massive petrol and diesel vehicle fleet. Incorporating Auto LPG into clean fuel policy will accelerate the country’s emissions reduction journey, safeguard public health, and demonstrate India’s readiness for global climate leadership.

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 closely with the World LPG Association and Society of Indian Automobile Manufacturers. 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.