No subsidy for LPG
despite Cabinet approval to use liquified petroleum gas ( lpg ) as a fuel for vehicles, the government will not be able to implement the decision without first amending the Motor Vehicles Act. This is because Section 52 of the act prohibits the use of lpg in motor vehicles. However, the government has also announced its decision not to subsidise lpg . Talking to the media, petroleum ministry officials said that at present lpg would be manufactured by parallel marketeers. At a later stage, oil public sector units ( psu s) would also be allowed to sell lpg as auto fuel, but without any subsidy.
On the other hand, the government is yet to take a decision on whether to allow the use of lpg only in four wheelers, or three wheelers as well. Already a high level committee has been set up to look into this matter. Meanwhile, the government is also trying to determine the apparatus required for lpg use in vehicles.
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