India’s LPG Imports Surge: Doubling Gas Purchases from the US to Reduce Dependence on Gulf Supply
India is actively seeking to diversify its Liquefied Petroleum Gas (LPG) supply sources, with the United States emerging as a significant supplier amid ongoing geopolitical tensions in the Middle East. The conflict has disrupted traditional supply routes, particularly through the Strait of Hormuz, which has impacted India’s LPG imports more than crude oil. As a result, Indian oil marketing companies are planning to increase LPG imports from the US, currently at about 2.2 million tonnes annually, to reduce reliance on Gulf suppliers.
LPG Contract With US
India signed a structured agreement with the US in November 2025 to import nearly 10% of its annual LPG requirement for the 2026 contract year. Since the onset of the West Asia conflict, the US has become one of India’s largest LPG suppliers, filling the gap left by disrupted shipments from the Gulf. A senior oil company executive noted that while crude oil availability was not a concern during the conflict, securing LPG supplies proved challenging. The US’s substantial LPG export capacity makes it an attractive option for diversifying India’s import sources.
US Emerges As Key LPG Supplier
Data from Kpler indicates a significant increase in India’s LPG imports from the US since the beginning of the US-Iran war. After a slight dip in April, imports have risen sharply, with June figures showing a 145% increase compared to February. In contrast, supplies from Middle Eastern countries have declined sharply, particularly following the closure of the Strait of Hormuz. The US’s share of India’s LPG imports rose from less than 8% in 2025 to approximately 65% by June 2023.
How Much Reliance on the Gulf Can Be Cut?
Increasing imports from the US will help diversify India’s LPG supply and reduce dependence on Gulf suppliers. However, experts caution that reliance on Middle Eastern sources is unlikely to diminish significantly. Before the conflict, the region supplied around 90% of India’s LPG imports. While US supplies are expected to increase, they come with longer transit times, which could add to costs. In May, the petroleum ministry instructed oil marketing companies to develop a plan for a 30-day strategic LPG reserve, which could be supported by expanded imports from the US and other countries.
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