Regulatory issues have checked companies from expanding their outlets selling auto LPG, leading to a stagnation in the consumption of the fuel that offers 40 per cent savings over petrol.
As for auto LPG, its consumption has grown just 10 per cent between 2007-08 and 2010-11 (see chart). In the current year too, it has been growing at an insignificant 1 per cent or so, much below compared to the 4.8 per cent growth seen in petrol.
The slow growth is despite the launch of several LPG variant vehicles. The country’s leading vehicle manufacturers now offer factory-fitted LPG variants. Resultantly, Maruti Suzuki, Hyundai Motors, Tata Motors, General Motors and Bajaj Auto, among others, have all launched some of their models in LPG Variants. Some of the popular OE-offered LPG vehicles are Maruti Wagon R, Hyundai Accent LPG, Santro, General Motors Spark, Tata Motors Xeta and Maruti Omni and 800-cc.
In the national capital, autogas is priced at Ra 41.18 per litre compared to Ra 66.42 for every litre of petrol. Like petrol, auto LPG prices have been going up frequently in past one year. Indian Oil, which has a market share of 49 per cent in auto LPG and markets it under the AutoGas brand, has raised prices by 35 per cent since April last year. In the same period, petrol price has moved up by 39 per cent in the capital.
An Indian Oil official attributed the stagnating trend to two reasons. “Getting clearance to set up stations is not easy. Setting up one station along with existing retail fuel outlet costs Ra 0.8 to 1 crore. Moreover, we are not allowed to put up standalone auto gas stations,” he said. Secondly, there is an incentive for diverting domestic LPG for usage in auto as domestic LPG price is regulated, he added.
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LPG is a clean, high-octane, abundant and eco-friendly fuel that is obtained from natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum gases like ethane and butane.
The use of LPG as an automotive fuel in India was permitted with effect from April 2000. While vehicle owners can opt for either an LPG-petrol run vehicle or a CNG vehicle, LPG has some advantages over CNG. The space required for storing a particular volume of LPG is one-third of that required by CNG. Moreover, LPG has a better calorific power of 66.1 mega joules per kg compared to CNG’s 47.7.