Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Industry News

| More

Auto LPG sector grows impressively; clocks 14% growth in sales

Posted On: 2018-12-19 13:21:54

The auto LPG sector in India clocked an impressive sales growth of 14% this year, thanks to rising petrol and diesel prices as well as growing social consciousness about the need for cleaner transport fuels.

The auto LPG industry grew at 14% in financial year 2017-18 as compared to 2016-17, with a total sales figure of around 400,000 tonnes. The previous year had witnessed a sales figure of 346,000 tonnes.

Notably, the auto LPG sector had closed the fiscal year 2016-17 with a sales growth of 4.9%. This indicates a steady and impressive growth trajectory for the alternative transport fuel in the country. A number of factors such as a steep hike in petrol and diesel prices, improved consciousness about the need for cleaner fuels and increasing penetration of the fuel across the country, have been instrumental in the growing shift towards auto LPG.

Auto LPG is available in more than 500 cities with a network of close to 1100 Stations, which makes it the most widely available alternate fuel. While the rise in global crude prices have impacted petrol, diesel as well as auto LPG price in India, the latter still remains priced at a much lower rate as compared to the former two. While the price of petrol has been hovering close to the Rs 80 mark for the past few months, auto LPG is priced at much less at less than 40% of Petrol costs. For example, Petrol in Hyderabad today is retailing at around Rs 77, whereas Auto LPG is selling at just Rs 44, making it almost 42% of the price of Petrol.

"Auto LPG has never been more relevant. As Indian cities struggle to fight the growing air pollution levels, petrol and diesel are increasingly becoming non-sustainable. The auto LPG sector in the past few years has witnessed a steady growth in India, as more and more people opt for hybrid vehicles and gaseous fuels. The growth also reflects the fact that the fuel has achieved improved penetration across the country," says Mr Suyash Gupta, Director General of the Indian Auto LPG Coalition (IAC).

The Indian Auto LPG Coalition is the apex industry body representing the interests of the auto LPG sector in India. The IAC has been demanding favorable policy initiatives from the government to allow auto LPG become a major alternative to petrol and diesel.

"We want auto LPG to be included in the recently launched city gas project which focuses entirely on CNG. It must be underlined that switching to auto LPG is much easier as compared to CNG, even as auto LPG is as clean a fuel as CNG. Unlike CNG, which requires creating extensive pipeline infrastructure, auto LPG can easily be transported even in trucks. Importantly, auto LPG can also be easily installed on two-wheelers which are among the major sources of dangerous emissions. Another important policy intervention urgently required is changing the existing system of Type Approval by agencies which comes with prohibitive approval costs of as high as Rs 4 crores every three years. The Type Approval Validity must be made perpetual in line with European norms as there is absolutely no logic for the same vehicle to undergo the same cost prohibitive tests every 3 years," adds Mr Gupta.

Globally, Auto LPG is the third most commonly used automotive fuel after Petrol and Diesel. Over 27 million vehicles across 70 countries use Auto LPG to help clean their urban environment. Auto LPG is a clean automotive fuel, which is much cheaper than both petrol and diesel. Like all gaseous fuels, Auto LPG emits almost negligible particulate matters and very low levels of nitrogen dioxides (NOx) - lower by almost 90% than diesel and 68% lesser NOx than petrol. Also, auto LPG emits about 22% lower carbon dioxide (CO2) than petrol which is comparable to the CO2 emissions of CNG.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com





Other Headlines:

Sathguru Management Consultants advises Pravesha Industries to divest majority stake in Crest Cellulose to Roquette Freres, SA

Saurashtra Freight Pvt. Ltd. charts out growth strategy

Toffee Insurance announces India's First Cyclist Insurance

Whitecaps flags of their 6 month excellence program in cake making

Home Credit India offers attractive customer-focused schemes across Lenovo and Motorola smartphone range

MyLoanCare rolls out a free loan portfolio management system

'India Cold Chain Show 2018' showcases innovative cooling solutions in Mumbai

ZestMoney partners with Xiaomi to provide financing options at Mi Home stores

Jana Small Finance Bank launches Jana Bankable Debit Card

GoAir announces Kannur as its 24th domestic destination

InterGlobe Foundation initiates Heritage Restoration and Waste Management In Rajasthan

eMudhra becomes an Executive Member of the Cloud Signature Consortium

ECGC chairs meeting of CEOs of ECAs of Asia Pacific Regional Cooperation Group in Mumbai

Fincare SFB posts 99 percent AUM growth, Rs.42.3 crore profit in H1 FY 2019

Future Generali India Life Insurance introduces a new age ULIP, Future Generali Big Dreams Insurance Plan

Honda 2Wheelers India drives Skill India Mission in Tamil Nadu

Indian biosimilar market to be worth $40 billion by 2030

Rane NSK Opens New Facility for EPS at Gujarat

GoAir reports highest OTP for second consecutive month!

ICAI signs MoU with CPA Canada

Square Capital Emerges as the Largest Integrated Mortgage Marketplace in India

Fresh impetus to the MSME sector - Acuité Ratings

GoAir's 13th Anniversary Offer: Up to 13 Lakh seats on sale at an all-inclusive price of Rs 1,313

India's plastics export jump 31.6% in H1 2018-19 to USD 4.59 bn

Homes worth Rs 1200 crore sold during Housing.com's Home Ustav 2018

Not just top 5 cities, now Tier III cities also contributing to retail participation in stock markets

Lighthouse invests 160 Crore in mattress company Duroflex

Kreditech licensed by Reserve Bank of India to operate as NBFC

Next Education partners with Capgemini as Edu-tech enabler

Co-origination lending: A potential solution to NBFCs' funding challenges

Honda 2Wheelers India expands its global footprint ahead of 2020

'All Weather Investing' - asset allocation with ETFs launched on smallcase.com

NPCI organises digital training workshops at 50 plus educational institutes on teacher's day

AVIVA launches Online Will Writing Service to Promote Financial Literacy

Chrysalis raises funding from Social Impact Investors Menterra and Artha

ICAI invites comments on Valuation Standards

Maharashtra New DP plan 2034 notification - Mr. Niranjan Hiranandani, President NAREDCO

Sterlite Power's OPGW facility receives 17025:2005 accreditation by NABL

Amazon.in adds 6 new fulfilment centers for Large Appliances and Furniture

Asset Management Firm Samvitti Capital launches new Alternative Investment Fund

ICAI committed to conclude the disciplinary process against those found involved in the PNB scam

Fintech startup BuyForexOnline looks to raise $2m for its next phase of growth

Wipro Consumer Care and Lighting forays into home automation space

Catholic Syrian Bank announces proposed investment by Fairfax India

KIFS Tade capital launches interactive Chatbot service #AskSubbu

Moneycontrol becomes India's first financial platform to launch a dedicated section on Cryptocurrency

DBS Group Chairman Peter Seah conferred Institute of Directors (IOD), India Distinguished Fellowship

Essar concludes sale of Aegis to Capital Square Partners for US $ 300 Million (Approximately Rs.2,000 crore)

ESAF Small Finance Bank kicks off operations in Mumbai

2.0 Audio Launch Sets Benchmark for International Film Events in Dubai







Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019