Auto LPG demand up but space constraint an issue
New Delhi   30-Aug-2010

The national oil companies are caught in a Catch- 22 situation over the marketing of auto LPG in big cities as demand for the green fuel is growing but they do not have enough space to set up fuelling facilities.

Hindustan Petroleum Corp Ltd (HPCL) executive director (sales) R. Sudhakara Rao told MAIL TODAY that the demand for auto LPG has shot up, "but we require a lot more space than is available at existing filling stations to set up LPGfuelling facilities". Since LPG is a highly inflammable product it requires around 20x24 meters of separate space to set up the fuelling infrastructure and this is not available at any more filling stations in the big cities. Rao explained that while space could be made available at filling stations outside the city there would be very low demand at such points.

A senior IndianOil (IOC) official said the demand for LPG had gone up in recent years as leading car manufacturers, such as Maruti Suzuki, Hyundai and GM have launched factory-fitted LPG-run models, which help motorists save as much as 35 to 40 per cent on fuel costs compared to petrol. While LPG costs Rs. 30.86 per litre in Delhi, petrol is priced at a much higher Rs. 51.43 a litre.

The oil firms are also keen to raise LPG sales since unlike LPG for household kitchens, which is sold at a subisidised price, auto LPG is sold at a profit.

Auto LPG is available in more than 350 cities with a network of close to 900 stations in India.

According to the India Auto LPG Coalition nearly seven lakh vehicles in India are run on LPG, of which around 1.5 lakh have factory- fitted kits while the rest have retrofitted gas kits.

The LPG car models include Maruti's 800, WagonR and Omni, Hyundai's Santro and Accent, GM's Chevrolet Spark and Tata Motors' Indica Xeta.

Others such as Fiat and Skoda plan to follow suit. Bajaj Auto also offers LPG options in its three- wheeler range as well as its Platina motorcycle.

A senior IOC official said auto LPG is a clean, high octane, abundant and eco- friendly fuel.

It is obtained from natural gas through fractionation and from crude oil through refining. It is a mixture of petroleum gases like propane and butane. The high energy content in this fuel results in a 10 per cent reduction of CO 2 emission as compared to petrol.

LPG is a gas at atmospheric pressure and normal temperatures, but it can be liquefied when moderate pressure is applied or when the temperature is sufficiently reduced.

This property makes the fuel an ideal energy source for a wide range of applications, as it can be easily condensed, packaged, stored and utilised.