Maruti Udyog Ltd on Thursday launched an LPG variant of its commercial vehicle Omni Cargo, India's first clean fuel vehicle used for transport applications.

The Omni Cargo has been competitively priced at Rs 178,000 (ex-showroom, Delhi), a company statement said in New Delhi.

The vehicle will attract an excise duty of 16 per cent unlike 24 per cent for similar vehicles run on conventional fuel.

Powered by 27-brake horse power, the Omni Cargo would enable customers to transport goods faster.

Though LPG was preferred fuel with low running cost, no manufacturer launched an LPG vehicle in the segment, Maruti officials said.

With the LPG-powered Omni Cargo, customers would be able to buy the vehicle from an authorised dealer who would also provide factory-fitted LPG kits, they said.

The purchase from authorised dealers would reduce the chances of accidents like fire and explosion, a common phenomenon in LPG kits bought from unauthorised dealers.

Companies like Reliance and Essar are setting up LPG stations in anticipation of a surge in demand for the clean fuel which has lower running cost than diesel.

The government has also recognised LPG as an automobile fuel and offers excise rebate on LPG-run commercial vehicles.

The LPG-run Omni Cargo could be alternative to goods carrier three-wheelers, they pointed out.