The demand for petroleum products in India has been increasing at a faster rate than the increase in domestic availability, resulting in increased imports. The transport sector is the single largest consumer of petroleum products. Secondly, about 65 % of total air pollution is caused by the emissions of pollutants from the vehicles run on petroleum products. In the wake of this, there is urgent need to introduce alternate fuels as substitutes for diesel and petrol in the transport sector. Biogas, a clean and renewable fuel, has vast potential in India. It can be supplement to petroleum products, if used in compressed form in cylinders. Here a model is conceptualized for bottling of biogas from 120 m3/day capacity biogas plant and its use as
vehicle fuel. It can save petrol worth about 0.66 million Rs. per annum and also generate employment for 12 persons.