INDIAN AUTOGAS MARKET : An Alternative Energy Source

Autogas

Aditi Chawda

Oct 15, 2020 — 6 min read

Autogas is understood as automotive LPG, which is a mixture of propane and butane. It's widely used as "Green" fuel, as its use reduces greenhouse emission. It's the foremost convenient variety to petroleum-based fuels, gasoline, and diesel utilized in transport. In recent times, most of the countries have well-developed autogas markets. It emits fewer hydrocarbons, monoxide, and oxides of gas. It will increase engine longevity as a result of its high measure.

It helps in reducing the carbon emission compared to gasoline and diesel. Many governments around the world are actively encouraging the employment of autogas in recognition of its varied environmental advantages and cost-effectiveness.

With the threat of global climate change rising Brobdingnagian, the necessity for apace deploying clean fuels for transport has never been pronounced.

Factors determining the use of autogas/LPG:

Price of alternative fuels.
The acquisition value of cylinders.
Safety considerations.
Cultural preferences.

Autogas V/S Alternative Fuels

Compared to other fuels autogas is an efficient source of fuel as it is cheaper than other available fuels. LPG vehicles are cheaper than other vehicles.

Autogas v/s Petrol

Cost: The price of automobile fuel cars is less than the value of gasoline cars. Autogas saves costs.
Octane rating: Automobile LPG incorporates a higher measure compared to gasoline.
Auto LPG could be a liquified gas; whereas, gasoline is liquid at gas pressure.

Autogas vs CNG

Auto LPG will run three times space on a full tank compared to CNG.
The conversion value of LPG is 50% less that of CNG.
Automotive LPG vehicles are cheap, as compared to CNG.
LPG is safer as a result of low tank pressure as compared to CNG.

India Autogas Market

It is calculable that there are 2.38 million vehicles capable of running autogas in India, and the majority is of three-wheeler vehicles. The chief makers currently provide models intrinsic with autogas.
There is an increase in sales of automobile LPG of fourteen percent because of the hike in costs of gasoline and diesel. The entire sales were around 400,000 tonnes within the year 2017-2018.

Autogas Dispensing Stations Across India(2008-2020)

The transportation sector is increasing the employment of autogas fuels, thus, making the expansion of the market. This increasing demand for cleaner fuels is the major market driver. Indian automotive LPG has reached $ 5.15 million units within the year 2019 and is anticipated to expand. Factors contributing to the present growth embrace rising demand for economical fuels compared to traditional fuels. There is an increase in the demand for environment-friendly fuels to decrease the pollution level in India.

The marketplace for autogas is growing as a result of the autumn in its costs, relative to alternative fuels like petrol and diesel. In most cities, three-wheeler rickshaws: a vital part of public conveyance is currently being regenerated to autogas running vehicles. Across the state, 1350 filling stations are there for automotive LPG in five hundred cities in states chiefly Andhra Pradesh, Gujarat, Kerala, Karnataka, Tamil Nadu, and Maharashtra.

Companies Providing Autogas Automobiles — Companies Providing Autogas Vehicles

Future Of Autogas In India

According to the Indian automobile LPG Coalition(IAC), LPG vehicles can cross the three million mark within the next 5 years in India. It is expected that three million autogas vehicles can run in India by the year 2022. At present, 2.3 million autogas vehicles are running, with a median of 10000-16000 vehicles remodeled monthly.

"Due to the earliest stages of the event of electric vehicles, the state of affairs for LPG is a lot of positive. It provides a lot of opportunities for autogas in today's market. Moving forward, we can see three million vehicles running on LPG if the govt offers a transparent roadmap on various cleaner fuels," aforementioned Suyash Gupta, Director General, Indian automobile LPG Coalition.

The reason behind the expansion of autogas is its cost. The cost per unit of LPG is fifty percent to that of diesel and gasoline. As winter is approaching, the considerations concerning air pollution and its harmful effects can reappear; thus, the government ought to encourage the use of cleaner fuels as autogas emits sixty-eight percent fewer oxide than gasoline and ninety-six percent than diesel. Autogas reduces vehicle emissions. Hence, five hundred cities have already got autogas filling stations. A lot of regions may be brought below the reach instantly, as autogas does not need pipelines and can be shipped easily.

Advantages and Downsides of LPG Hopped-up Vehicles

Advantages:

Autogas offers low running prices.
Cheaper than gasoline and diesel.
Lower service value because of less wear and tear of engine parts.
Environmental advantages - less harm to surroundings(reduce emissions of Carbon dioxide).
Higher compression will increase power output.

Disadvantages:

Extra value in shopping for an LPG automotive.
Problems in finding LPG service stations.

Government Incentive Policy

The chief government policy incentive for autogas is the excise tax exemption. The government has removed restrictions on the retail costs of autogas, petrol, and diesel; this suggests that the businesses are liberal to revise their autogas costs monthly. Once the introduction of the Goods and Services Tax(GST)on first July 2017, the taxation of LPG modified, that favored the autogas market. After the GST reform, LPG is taxed at one rate of eighteen in all sectors. This shift in costs provides a major boost to autogas demand in India.

Conclusion

The Indian autogas market began to increase in 2008. Still, the consumption of autogas is low as compared to alternative fuels. Autogas is the best energy supply that is present in abundance at present and prepared for future use. It's the third most used fuel in the world. Autogas is convenient and low maintenance fuel. It impacts air quality. It helps in reducing the carbon emission compared to gasoline and diesel. Various governments around the world are actively encouraging the employment of autogas in recognition of its varied environmental advantages and cost-effectiveness.