IndianOil to boost auto LPG outlets
New Delhi   17-Aug-2009
State-run IndianOil is planning to take the number of its Auto LPG outlets to 300 by the year-end. The company has over 230 auto LPG dispensing stations across 124 cities. It plans to invest around Rs 60 crore in new outlets set up under the AutoGas brand. "We are looking at several markets in the urban and peripheral areas. We don't have the mandate to put up standalone LPG outlets and getting a licence is an area of concern which needs to be addressed," said Mr. N. Srikumar, Executive Director, Branding and Advertising. Auto LPG is a clean and eco-friendly fuel. It is a mixture of petroleum gases like propane and butane. The higher energy content in this fuel results in a 10 per cent reduction of CO2 emission as compared to patrol "With original equipment manufacturers now coming up with auto LPG vehicles, the demand for this fuel is set to grow," said Mr. Srikumar. The consumption of auto LPG is approximately 10 per cent more as compared to petrol for running the same number of kilometers. However, the price per litre is around 40 per cent less than petrol (for Mumbai). In comparison to compressed natural gas (CNG) that sells at Rs 24.65 a kg in Mumbai, auto LPG is costlier by about 19 per cent at Rs 29.26 a kg. Oil companies have to compete with CNG in the auto LPG segment, though they claim auto LPG is a better fuel than CNG even under high speed and heavy load conditions. Making auto LPG available is also easier, since all it needs is installation of storage facility, while CNG can be made available only in select cities where pipeline has been laid. The cost of installing the dispensing infrastructure for an auto gas LPG station is around Rs 40 lakh at an existing retail outlet, while it is Rs 150 lakh for CNG. Cost conversion of a vehicle from petrol to run on LPG would be anywhere between Rs 15,000 to 25,000, whereas doing so for CNG would be between Rs 35,000 to Rs 40,000 for three- or four-wheelers.