1.0 LPG as an automotive fuel in the country was introduced in India after the issuance of the LPG (Regulation of Use in Motor Vehicles) Order in the year 2001 by Ministry of Petroleum & Natural Gas. The actual retailing of Auto LPG thru an Auto LPG Dispensing Station (ALDS) could commence only in late 2002 with the introduction of LPG Conversion Kits duly approved by ARAI. It has been more than 6 years since, and during this period, the Auto LPG Industry has been treading a path of steady progress, consolidation and above all, safety.

2.0 SALIENT FEATURES OF LIQUEFIED PETROLEUM GAS (REGULATION OF USE IN MOTOR VEHICLES) ORDER’2001:
2.1 Allows Government Oil Companies and Rated Parallel Marketers to import (including Auto LPG import substitution), storing, distribution and selling Auto LPG for Automotive purpose (conforming to IS 14861:2000) through Auto LPG Dispensing Stations to registered vehicles with permanently fitted Auto LPG tanks and approved LPG Conversion Kits as notified by Ministry of Surface Transport, Government of India.

2.2 As per the LPG (regulation of Use in Motor Vehicles) Order-2001, either imported or import-substituted LPG can be used for Auto LPG purposes. The product specifications of Auto LPG are different from Domestic LPG and should conform to IS 14861:2000. Accordingly, PSU Oil Companies are marketing Auto LPG sourced from following indigenous productions sources.

Autogas enjoys great popularity in numerous countries and territories, including Australia, the European Union, Hong Kong, India, the Philippines, the Republic of Macedonia, South Korea, Serbia, Sri Lanka and Turkey. It is also available at larger petrol stations in several countries. In the Republic of Armenia, for example, the transport ministry estimates as many as 20 to 30% of vehicles use autogas, because it offers a very cheap alternative to both diesel and petrol, being less than half the price of petrol and some 40% cheaper than diesel. The recent[when?] rises in oil-derived fuel prices has significantly increased the difference.

AutoGas (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 higher energy content in this fuel results in a 10% reduction of CO2 emission as compared to MS.

AutoGas 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 utilized. When the pressure is released, the liquid makes up about 250 times its volume as gas, so large amounts of energy can be stored and transported compactly.

The use of LPG as an automotive fuel has become legal in India with effect from April 24, 2000, albeit within the prescribed safety terms and conditions. Hitherto, the thousands of LPG vehicles running in various cities have been doing so illegally by using domestic LPG cylinders, a very unsafe practice. Using domestic LPG cylinders in automobiles is still illegal.