NEW DELHI: Indian oil marketing companies have successfully concluded a one-year deal to import around 2.2 MTPA of LPG from the US, said Minister of Petroleum Hardeep Singh Puri.
Puri, in a social media post, said that close to 10% of India’s annual imports for the contract year 2026 will be sourced from the US Gulf Coast — marking the first structured contract for US LPG in the Indian market.
“One of the largest and the world’s fastest growing LPG market opens up to the United States. In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing,” said the minister.
India is one of the world's largest consumers of liquefied petroleum gas (LPG), primarily used for cooking in households. With domestic production covering only about 35% of demand, the country relies heavily on imports for the remaining 65% of its total consumption.
The Gulf region dominates India's LPG supply chain, with Qatar as the largest source, followed by the UAE, Kuwait, and Saudi Arabia. Following the recent tariff announcement, India has increased its purchases from the US, including crude, LNG, and now LPG, substantially.
The LPG purchase is based on using Mont Belvieu as the benchmark for LPG pricing. A team of officials from IOCL, BPCL, and HPCL visited the US and held discussions with major American producers over the last few months, which have now concluded.
The minister further said that under the leadership of Prime Minister Narendra Modi, India’s PSU oil companies have been providing LPG at some of the lowest global prices to consumers.
“Even as global prices soared by over 60% last year, Modi ensured that our Ujjwala consumers continued to receive LPG cylinder at just ₹500-550 whereas the actual cost of the cylinder was over ₹1100. Government of India incurred the cost of over ₹40000 crores last year in order to ensure our mothers and sisters did not feel the burden of rising international LPG prices,” said the minister.