Fluctuating fuel prices and associated pollution problems of largely exploited petroleum liquid fuel has stimulated the research on abundantly available gaseous fuels to keep the mobility industry intact. In the present work an air cooled diesel engine was modified suitably into a spark ignition engine incorporating electronic ignition and variable speed dependant spark timing to accommodate both LPG and CNG as fuels. Engine was optimized for stoichiometric operation on engine dynamometer. Materials of a few intricate engine components were replaced to suit LPG and CNG application. Ignition timing was mapped to work with gaseous fuels for different speeds. Compensation was done for recovering volumetric efficiency when operated with CNG by introducing more volume of air through resonator. Ignition timing was observed to be the pertinent parameter in achieving good performance with gaseous fuels under consideration. Performance and emission tests were carried out on engine dynamometer and chassis dynamometer. Under wide open throttle and at rated speed condition, it was observed that the peak pressure with LPG was lying between diesel fuel and CNG fuel operation due to slow burning nature of gaseous fuels. As compression ratio was maintained same for LPG and CNG fuel operation, low CO emissions were observed with LPG where as HC + NOx emissions were lower with CNG fuel operation. Chassis dynamometer based emission tests yielded lower CO2 levels with CNG operation.