Archive · 19 Dec 2025
India Diversifies LPG Imports to US
India is buying more cooking gas (LPG) from the US.
This is because the US is offering good prices and quality, similar to what India gets from the Gulf countries.
India imports a lot of LPG, mostly for home cooking.
The government is trying to get LPG from different places to make sure it's always available and not too expensive.
They signed a big deal to buy 2.2 million tonnes of LPG from the US for next year.
This is about 10% of what India usually buys.
Before, India got most of its LPG from the Middle East, but now they have more choices.
This helps India get better prices and makes sure they have enough cooking gas for everyone.
India is diversifying LPG imports to include the US, alongside traditional Gulf suppliers.
A one-year contract for 2.2 million tonnes of LPG from the US Gulf Coast was signed for 2026.
India imports 55-60% of its LPG, with 90% used for household cooking.
Saudi Arabia accounts for about one-third of India's LPG imports.
Diversifying LPG sources helps India secure affordable and reliable supplies.
- Who
- Indian Oil Corporation (IOCL), Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL), Minister of State for Petroleum & Natural Gas Suresh Gopi, Commerce Secretary Rajesh Agrawal, Crisil Intelligence
- What
- India is diversifying its LPG imports to include the US, alongside traditional suppliers in the Gulf
- When
- The US LPG contract is for the year 2026, with information provided on December 18, 2025
- Where
- The LPG is being sourced from the US Gulf Coast, with traditional supplies from the Middle East
- Why
- To secure affordable and reliable LPG supplies, reduce reliance on a single region, and balance bilateral trade with the US
Supporters of Diversification
Traditional Suppliers
Supply Security
Supporters of Diversification
Diversifying LPG sources enhances supply security and reduces reliance on a single region.
Traditional Suppliers
Traditional suppliers like Saudi Arabia have a proven track record of reliable supply.
Pricing
Supporters of Diversification
Importing from the US can lead to better pricing and more competitive deals.
Traditional Suppliers
Long-standing relationships with Gulf suppliers may offer more stable and predictable pricing.
- LPG Import Percentage
- 55-60%
- Household Consumption
- 90%
- Saudi Arabia's Share
- One-third of India's LPG imports
- Total LPG Imports (FY25)
- 20.67 million tonnes
- Total LPG Imports (H1 FY26)
- 10.84 million tonnes
- US LPG Contract
- 2.2 million tonnes per annum
- US LPG Contract Duration
- One year (2026)
- Middle East LPG Import Share (FY25)
- 91-93%
Sources
US, Gulf LPG prices competitive, says Oil Ministry
US, Gulf LPG prices competitive, says Oil Ministry
Russian Oil Curbs to Slash Crude Prices, Boost IOC-BPCL-HPCL Margins in 2026
A New Horizon: The India-Oman Trade Pact And The Threads Of Connection
