Skip to content
Register now to join the exclusive LPG Cylinder Franchisee Seminar at Visakhapatnam 16th July 2024.
Return to blog overview

SHV India commits to Auto LPG and anti-competition

SHV India is an active member of the Indian Auto LPG Coalition [IAC] – a group comprised of government oil companies, private LPG companies, private LPG marketers, LPG kit suppliers, equipment manufacturers and turnkey installers. The IAC works to promote auto LPG (popularly known as Auto Gas) as a preferred alternative fuel in India. SHV India is represented by Sreeman Kadali – our VP Legal & Compliance Officer – who is a member of the Executive Committee that meets once each quarter.

Concrete steps towards Auto LPG

The IAC began liaising with the central government of India and respective state governments to include Auto Gas in all Regulatory/Policy notifications on par with CNG. The IAC has also started actively engaging with Original Equipment Manufacturers (OEMs) and reached out with an Auto Gas message to them in order to create more OE models that run on Auto Gas.

At the same time, the IAC is working with policy makers to increase their awareness of the economics, emission benefits and viability of Auto Gas as they push for support and fiscal/non-fiscal incentives. They also work closely with Auto Gas kit manufacturers and retro-fitters to encourage conversions from gasoline to Auto Gas.

In a continuation of its efforts, the IAC is approaching the Ministry of Finance with an independent report of a third party agency (CRISIL) regarding the overall direct and indirect benefits of taxing Auto Gas at 5%, along with CNG and other LPG grades, to leave no incentive for unscrupulous practices.

SHV drives Competition Law Regulation compliance

In line with SHV’s Competition Compliance, Sreeman suggested certain guidelines to the IAC in terms of conducting its meetings by following Competition Law Regulations. Sreeman has now prepared a standard template declaration to be signed annually by all IAC members. In it, they will agree to implement and abide by Competition Law Regulations without fail. The IAC has also implemented his suggestion of pre-circulating meeting agendas to all members well in advance.

Additionally, the first item on meeting agendas is now a ‘Competition Law Moment’, during which the Director General of the IAC reads the compliance statement categorically stating that the meeting will be held in line with Competition Law Regulations, and that nothing will be discussed or conducted that could be termed ‘anti-competitive’. This statement is then recorded in the minutes of meeting and signed off.

SHV India will continue to work hard in the areas of competition law and Auto LPG to move into the future in a responsible and environmentally-friendly way.