India Plans to Increase LPG Imports from the US
New Delhi: Indian oil companies are aiming to boost their liquefied petroleum gas (LPG) purchases from the United States. Currently, they import about 2.2 million tonnes annually, but there are discussions to double this amount. This shift is part of a broader strategy to diversify their sources and reduce reliance on Gulf countries.
Sources indicate that Indian oil marketing companies are also looking into alternative suppliers, including Algeria. In November 2025, India established a structured contract with the US to secure nearly 10% of its cooking gas needs for the following year. The recent conflict in West Asia highlighted the importance of this agreement, as the US stepped in as a major LPG supplier when shipments from the Gulf were delayed.
By increasing imports from the US, India aims not only to lessen its dependence on the Gulf but also to create strategic reserves for any future supply disruptions. In an effort to prepare, the petroleum ministry directed oil companies in May to develop a plan for a 30-day strategic reserve of LPG. Greater US imports could contribute to this goal.
A senior executive from an oil company mentioned, “During the conflict, our crude supplies were stable, but we faced challenges with LPG. Aside from Gulf nations, there aren’t many LPG producers. We actively searched for alternatives and secured US supplies to address our needs during that time.” The US has significant additional capacity for LPG exports, which India can utilize to further diversify its supply chain.
The planned 30-day reserve will be separate from the existing 45-day rolling stock that oil retailers keep to meet both domestic and commercial demands for LPG cylinders.
Recent data reveals that India sourced less than 8% of its imported LPG from the US in 2025. However, this percentage rose to nearly 12% in January when the contract took effect. By March, as the conflict escalated, US LPG accounted for an impressive 37% of imports, further increasing to 40% in April, 55% in May, and reaching 65% in June.
This focus on energy imports from the US has played a significant role in narrowing India’s trade deficit. In addition to the US, India is also exploring LPG supplies from countries like Argentina, Nigeria, and Malaysia.
