According to the industry body Indian Auto LPG Coalition (IAC), sales volumes have been affected due to the country-wide lockdown and the traffic restrictions amid the COVID-19 crisis. The demand from three-wheeler segment, which is among the largest consumers of Autogas, has experienced a strong reduction since public transport has been strictly off roads.

The sector is therefore staring at a long period of economic slump and suppressed demand, it said in a statement, adding that long term fiscal and non-fiscal policy incentives from the government are needed to revive the industry quickly.

“The Autogas sector has been hit the hardest because the major consumers of this clean fuel in the country are commercial vehicles and three-wheelers. The industry needs help from the government through a series of fiscal and non-fiscal policy interventions to survive this difficult period,” said the IAC Director General Suyash Gupta. “We particularly request that corporate tax on Autogas operators and station owners be reduced to 15% for FY 2020-21 and a six-month tax holiday is provided for new retail outlets to be commissioned during FY 2020-21.”

Moreover, the industry asked the government to consider deferring its singularly focused electric vehicle pursuit and focus instead on promoting readily available clean alternative fuels such as Autogas to immediately address environmental concerns.

“Lockdown has given us a good context of what reducing the usage of petrol and diesel can do for air quality. In the post COVID era, the government needs to balance air quality goals together with an eye on the fiscal good health of the OEMs,” Gupta added. “Adopting clean alternative fuels like LPG and shifting a substantial part of personal and public vehicles to this fuel can have significant benefits for the environment.”

As all economic activity and transportation came to a halt, significant improvement in air quality has been witnessed in almost all Indian cities over the past weeks, according to the association, and Autogas has a proven track record in improving air quality across the world. For more information, please visit this link.

27 May 2020