Automobile LPG sales grow 4.9 per cent in 2016-17

The automobile LPG sector in India closed the financial year 2016-17 with sales growth of 4.9 per cent over the last year, owing to a drop in prices.

Meanwhile, the sales volume growth was 8.18 per cent in March as against a year ago. The auto LPG sales in India grew to 346,000 tonnes in 2016-17 as against 330,000 tonnes in 2015-16, helped by reduction in prices by firms such as IndianOil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited since October 2016, making the fuel about 50 per cent cheaper than petrol. Following this, sales jumped 16 per cent in the period between October 1, 2016, and December 31, 2016.

"No doubt auto LPG is the fuel of the future, and that it is the solution to check the growing pollution levels in Indian cities. We are positive about the growth in sales volume achieved in 2016-17 as it reflects the growing penetration of the fuel across the country. However, we are hopeful of much more positive growth in the coming year as the goods and services tax rolls out, bringing commercial and domestic LPG prices on a par with each other," said Suyash Gupta, director-general of Indian Auto LPG Coalition. Auto LPG is much cheaper than petrol and diesel. The current indirect taxation regime makes auto LPG less attractive. While there is zero custom and excise duty on domestic LPG and minimal value-added tax, the same are cumulatively as high as 15-20 per cent on commercial LPG.