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The ministry’s decision to hike the oil price will not have any particular impact on a section of automobile users — the owners of LPG-run vehicles.

The price of auto-LPG in the country is not subsidised by the Government and is being governed by international prices, said Mr Suyash Gupta, General, Indian Auto LPG Coalition (IAC), industry body of auto-LPG suppliers.

Although the auto-LPG, is not being subsidised, its price/litre remains about Rs 15 lesser than petrol, while it is almost equal to or a little less than that of diesel in many Indian cities. The auto-LPG users are still in an advantageous position due to the substantial gain in running cost resulting from better fuel efficiency. The running cost is cut down up to 60 per cent, says the IAC Web Site.

Suzuki is launching the LPG version of M800 this month. Hyundai will launch LPG-Santro and Accent, while planning to launch an LPG variant of i10 next year.

Tata Motors launched the LPG-Indica a fortnight ago.

“The success of Wagon R Duo has proved that there is a huge market for vehicles fitted with LPG kits. As LPG becomes more available we are sure to see more OEM’s launching their LPG variants. Rising cost of fuel is another factor. We could see as much as 10 per cent of all new cars coming fitted with LPG/CNG fuel systems in the next three-five years,” said Mr N.K. Minda, Managing Director of Minda Auto Gas, the company that provides LPG kits to OEMs including Maruti Suzuki.

http://www.thehindubusinessline.com/2008/06/05/stories/2008060551990300.htm