Archive · 8 Aug 2026
US Becomes India's Largest LPG Supplier After Hormuz Crisis
India uses a fuel called LPG to cook food in millions of homes.
Most of this gas used to travel through a narrow sea path called the Strait of Hormuz.
When a big crisis in the Middle East closed that path, India had to find gas from somewhere else.
India started buying much more gas from the United States, which is now its biggest supplier.
The minister in charge of India's oil, Hardeep Singh Puri, said America provides about 67 out of every 100 units of imported gas.
India also made more gas at home and bought oil from more countries, so no fuel station ran out.
He said not one of the more than 1.07 lakh fuel outlets went dry.
The government is now helping private companies look for oil deep under the sea through a programme called Samudra Manthan.
The programme costs Rs 84,000 crore and covers up to half the drilling cost of each well.
Because of all these changes, Indian homes kept getting gas without any shortage.
The United States now accounts for about 67 per cent of India's LPG imports, making it India's largest supplier.
The shift followed the Middle East crisis and the closure of the critical Strait of Hormuz waterway.
Before the crisis, about 90 per cent of LPG imports, 60 per cent of other gas imports and up to half of India's crude oil relied on the strait for transit.
India expanded its crude supply sources from 27 to 41 countries and city gas distribution coverage from 55 to 309 geographical areas.
The government approved the Rs 84,000 crore Samudra Manthan programme, supporting up to 50 per cent of drilling costs or Rs 650 crore per well for private deepwater exploration.
- Who
- Union Oil Minister Hardeep Singh Puri, speaking at an event organized by the Confederation of Indian Industry (CII).
- What
- The United States has become India's largest LPG supplier, accounting for about 67 per cent of imports after the Middle East crisis disrupted Gulf supplies.
- When
- Announced on Friday; the disruption occurred during the Middle East crisis that closed the Strait of Hormuz.
- Where
- India; the announcement was made at a CII event.
- Why
- To secure energy supplies after the closure of the Strait of Hormuz forced India to diversify sourcing and boost domestic production.
- US share of India's LPG imports
- About 67 per cent
- LPG imports previously transiting Strait of Hormuz
- About 90 per cent
- Other gas imports via the strait
- 60 per cent
- Crude oil sourced via the strait before crisis
- Up to half of India's imports
- Crude supply sources
- Expanded from 27 to 41 countries
- City gas distribution coverage
- Expanded from 55 to 309 geographical areas
- Fuel retail outlets
- More than 1.07 lakh (52,000 in 2014)
- Samudra Manthan programme
- Rs 84,000 crore for deepwater oil and gas exploration
- Government drilling support
- Up to 50 per cent of costs or Rs 650 crore per well
