The plan will also have to be okayed by the chief controller of explosives to ensure that LPG is a safe fuel for automobiles. The oil companies will first use this opportunity to test launch the product and check out what consumers have to say about it. If the feedback is positive, LPG will be available in more retail outlets all over the country.

According to experts, this move is a clear indication that over the next three years, LPG will be out of the purview of the public distribution system. The Nirmal Singh committee report on oil reforms had planned a five year schedule for deregulation and by 2002, LPG pricing will purely bemarket-driven.

It would be to the advantage of the auto sector, especially cars, to use LPG as fuel because it is cheaper and cleaner than both motor spirit (petrol) and diesel. Possibly, the next best alternative is compressed natural gas (CNG) which is increasingly used by the taxi segment.

Using LPG would involve either a conversion kit and tank or replacement of cylinder cartridges, of which the former is the relatively safe option. In many states, especially in the north and west, cars have resorted to use of LPG and petrol through a dual fuel mode conversion. This is extremely dangerous and can cause a fire.

Auto manufacturers like Hyundai Motor India have a provision for fitting an LPG tank in their cars. It is now more than likely that others will follow and this will possibly result in a price increase of around Rs 15,000 per car for the accessory. This would almost be at par with the additional price tag for a vehicle fitted with a catalytic converter.

Observers are certain that the LPGconcept will catch on like wild fire especially in the background of the high price of petrol at over Rs 25 a litre. This is bound to keep increasing if the Government needs to keep the oil pool deficit in check. World prices of crude are on the rise and the only way to make up for this is to hike diesel and petrol prices to be able to subsidise kerosene.

What the oil companies need to ensure is that there is no hitch in LPG deliveries to their retail outlets. This has been a common complaint with CNG where cabbies have found it difficult to source the fuel with the added problem that there are very few supply points in the country.