By Admin 
- This will stabilize prices and American trade will increase.
India LPG Import from US: India is preparing to import 25% of its Liquefied Petroleum Gas (LPG) from America by 2027. This has been revealed in a report. It is expected that this will reduce the dependence on imports from Gulf countries and will also help efforts to make a trade deal with America.
Lessons learned from Iran-America war
The government is thinking of taking this step at a time when the closure of the Strait of Hormuz during the fierce war between Iran and America had a severe impact on the energy supply. Due to this the country had to face a huge shortage of LPG. The government implemented emergency measures to divert petrochemical feedstock from industry to households that use LPG for cooking. However, now the government wants to take some such steps in time so that if such a situation ever arises again in the future, it would already have Plan ‘B’ ready.
From which countries does India import LPG?
Of India’s 21.85 million tonnes of LPG imports in 2025, about 90% were from the Middle East, making India the world’s third largest importer and consumer. The remaining 10% comes from countries like America, Norway, Algeria, Australia and Canada. Government data shows that about 66% of the LPG used in the country comes from imports. The biggest supplier among these is UAE, from where India imports about 40% of LPG.
Now the picture is going to change
Keeping in mind the increasing tension in the Middle East and the obstructions in Hormuz, India is working rapidly on changing this ratio of 90:10. As part of a major shift in energy imports, India will depend on the US for 25% of its LPG supply by 2027. In this sequence, it is also being told that in the next one or two months, government refiners – Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp – are going to float a tender for LPG supply from America in 2027. Its objective is to make booking in advance to ensure uninterrupted supply of LPG in the country in 2027. Due to the ongoing tension in the routes (Red Sea and Strait of Hormuz) of Gulf countries like Qatar and UAE, India is considering America as a safe and reliable option for its energy security.
What is the next plan of the companies?
Indian government oil companies will float tenders and make long-term deals with American exporters. The market for shale gas in America is very large and stable. If the contracts are long, then the prices of cylinders in India will also remain stable for a long time because in America, gas prices do not fluctuate much like in Gulf countries. If India starts getting gas from America at fixed rates for a long time, then in case of war or increase in tension in the Middle East, there will be no fear of sudden price increase nor will it have any impact on the pocket. Another advantage of this will be that in the coming times, there will be competition between America and Gulf countries for selling oil to India, both will try to provide oil at better rates.
Will talks move forward on trade deal?
India is planning to increase energy purchases from $10 billion to $25 billion to take forward the stalled trade deal with America. This will help in taking bilateral trade to 500 billion dollars by 2030.
According to the report, India has already increased spot purchases from the US and other vendors to compensate for the shortfall in supply from the Middle East. LPG imports from the US exceeded 1 million tonnes (1 million tonnes) for the first time in June and are estimated to exceed India’s initial annual contract target of 22 lakh tonnes (2.2 million tonnes) for 2026.
Due to reduced supply from the Middle East, LPG consumption in India declined to about 14.7 million tonnes (14.7 million tonnes) between January and June 2026, which is about 8% less than last year. According to preliminary government data, imports fell by about 28% to about 7.5 million tonnes (7.5 million tonnes). According to an estimate, due to less supply, LPG consumption in India will reduce to about 30 million tonnes this year. However, when the demand reaches about 31 million tonnes in 2027, LPG imports may increase to about 20 MT.
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