Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered...

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Transcript of Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered...

Page 1: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5
Page 2: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

Domestic LPG

➢ Packed product in 14.2 Kg & 5 Kgcylinders, home delivered throughdistributor network

Non Domestic LPG

➢ Packed product in 5 Kg, 19 Kg, 47.5Kg & 425 Kg delivered supply throughdistributors.

Industrial

➢ Delivered thru Bulk tankers

Transport (Auto LPG)

➢ Through Retail Outlets along withMS/HSD

Segment wise break-up (%)-Industry(2017-18)

Segments of LPG Industry

Domestic 88.39%(20344TMT)

Non

Domestic9.1%(2090 TMT)

Transport0.8%

(184 TMT)

Industrial 1.71%

(396TMT)

Page 3: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

3rd most used automotive fuel

globally, after MS and HSD.

The most viable alternate fuel, with a global LPG

oversupply of more than 20 million tonnes.

Global Saudi CP been less than $500/Ton,

making LPG prices very competitive

India is 2nd overall in domestic LPG

consumption. However, in Transport, India is at 18th

position globally*.

WHY AUTO LPG ?

Globally 26 Mn vehicles / 71,000 ALDS / consumption >26 MMT

India + 2 Mn vehicles / 1172 ALDS / consumption 0.39 MMT only* Global Statistics Report 2018 WLPGA

Page 4: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

GLOBAL SCENARIO

Subsequent to the huge success of PMUY, in domestic sector, India currently is at 3rd position after China & USA.

However, in Transport, India is currently only at 18th position globally.a) South Korea is #1 (3.3 MMT),

b) Turkey #2 (3.2 MMT)

c) Russia (3.1 MMT)

d) Poland(1.91 MMT)

e) Italy (1.67 MMT)

f) Thailand(1.32 MMT),

g) Japan (0.72 MMT)

….

India (0.4 MMT)

Almost 40% of all private vehicles run on Auto LPG in Turkey

Page 5: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

AUTO GAS : SALES & INFRASTRUCTURE

S.No. Company

FY 2017-18

(in MT) #ALDS

1 Aegis 24,121 71

2 BPCL 32903 85

3 Total LPG 49,219 60

4 HPCL 44,206 218

5 IOC 1,07,275 369

6 RIL 22,998 98

7 SHV 13,220 21

7 Vanaz 4,404 7

9 IPPL 18,970 24

10 Essar Oil 796 4

11 K R Fuels 12,200 20

12 Samriddhi 11,303 14

13 Sree LPG 422 1

SUB-TOTAL 342036 992

Others 58608 180

TOTAL 4,00,644 1172

Aegis 6

BPCL8

Total LPG12

HPCL11IOC

27

RIL6

SHV 3

IPPL5

Others22

Sales Market Share (%)FY 2017- 18

Aegis 6

BPCL7 Total LPG

5

HPCL19

IOC31

RIL8

SHV 2

IPPL2

Others20

# ALDS Market Share (%)Source: IAC

Page 6: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

THE ‘AUTO LPG’ VALUE PROPOSITION

Wide Availability, 500 + Cities covered in India

Higher Petrol – Auto LPG Cost Difference. Almost 50% Cheaper

Environment friendly

Cheaper than High Speed Diesel

LPG Infrastructure can be set up in a short time

Lower Costs of Infrastructure and conversion than other alternatives

Cost of setting up ALDS is around $100K which is almost half compared to other alternatives

Page 7: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

CHALLENGES

• Low awareness

• Limited ALDS infrastructure

• Very Few OEMs available

• Diversion

• Distorted perception

• Comparatively higher tax

Page 8: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

THE CNG CHALLENGEAs on 01.02.19

Three wheeler Four wheeler

Price of Auto LPG

(Rs/L)

Price of CNG

(Rs/Kg)

Mileage Per km cost Mileage Per km cost

Slno City Auto LPG CNG Auto LPG CNG Auto LPG CNG Auto LPG CNG

1 DELHI 41.62 44.7 25 35 1.66 1.28 12 18 3.47 2.48

2 MUMBAI 41.62 49.61 25 35 1.66 1.42 12 18 3.47 2.76

3 CHANDIGARH 38.86 43.7 25 35 1.55 1.25 12 18 3.24 2.43

4 HYDERABAD 39.78 52 25 35 1.59 1.49 12 18 3.32 2.89

• Lower running cost(per km) of CNG remains a competitive threat for Auto LPG

Page 9: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5

WAY FORWARD • Issuance of gazette notifications for mandatory conversion of commercial and

government vehicles to Auto LPG

• Push OEMs to launch ALPG variants – MUL has assured restarting Auto LPG variant Wagon R.

• Taxation to be at par with other alternatives such as CNG

• Incentives for conversion (Eg. Road / registration-tax exemption or rebate, Exemption from parking charges)

• Information dissemination and public awareness campaigns

• WLPGA action plan 2019 should also cover India along with other countries for impacting legislative frameworks of AutoGas

Page 10: Segments of LPG Industry · Domestic LPG Packed product in 14.2 Kg & 5 Kg cylinders, home delivered through distributor network Non Domestic LPG Packed product in 5 Kg, 19 Kg, 47.5