UAE Supplies 39% of India’s LPG Imports as US Share Falls to 23%

The United Arab Emirates (UAE) overtook the United States to become India’s largest supplier of liquefied petroleum gas (LPG) in September 2026, as shipments from the Gulf recovered following months of disruption to energy flows through the Strait of Hormuz. Data from maritime intelligence firm Kpler showed that the UAE accounted for 39% of India’s LPG imports during the month, compared with just 13% in August. The US share declined from 53% to 23%, marking a significant reversal in India’s recent sourcing pattern.

The shift comes after the US emerged as India’s leading LPG supplier when the US-Iran conflict disrupted traditional supply routes in West Asia in late February 2026. Gulf shipments have since begun recovering, allowing Indian buyers to source more fuel from geographically closer suppliers. However, India’s overall LPG imports fell 4% month-on-month to 1.39 million tonnes in September, indicating that the recovery in regional supplies did not translate into an increase in total imports. The changing import mix also highlights India’s continuing challenge of balancing energy security, transportation costs and dependence on overseas suppliers.

UAE Becomes India’s Largest LPG Supplier

The UAE supplied 547,000 tonnes of LPG to India in September, a 182% increase from 193,000 tonnes in August, according to Kpler data cited by Moneycontrol. The increase moved the Gulf nation ahead of the US, which had led India’s LPG import basket for the previous six months.

The US supplied 323,000 tonnes during September, down 58% from the previous month. Its share of India’s imports fell sharply as UAE shipments increased and other Gulf suppliers also recorded higher volumes.

LPG supplier	September 2026 imports	Share of India’s imports	Month-on-month trend
UAE	547,000 tonnes	39%	Up 182%
United States	323,000 tonnes	23%	Down 58%
Kuwait	132,544 tonnes	Approximately 9.5%	Up 15.6%
Qatar	115,340 tonnes	Approximately 8.3%	Up 76%
Iran	89,000 tonnes	Approximately 6.4%	Included among other suppliers

Source: Kpler data reported by Moneycontrol on October 9, 2026. Supplier shares are rounded; figures may not add up to 100% because of rounding and other supplying countries.

India imported approximately 1.39 million tonnes of LPG in September. The UAE’s increased contribution was therefore particularly significant, accounting for more than one-third of the country’s monthly imports.

Kuwait and Qatar also increased shipments, while India did not import LPG from Saudi Arabia during the month. Other suppliers included Oman, the Republic of the Congo, Brunei and Algeria.

Why India’s LPG Supply Pattern Changed

The shift in supplier rankings is closely connected to the disruption of shipping through the Strait of Hormuz.

The Strait is a strategically important waterway linking the Persian Gulf with international shipping routes. Energy exporters across the region rely on it to transport substantial volumes of oil and gas to customers worldwide. Disruptions can affect shipping schedules, insurance costs, freight rates and the availability of cargoes.

Before the conflict, Gulf countries supplied the overwhelming majority of India’s LPG imports. Moneycontrol reported that India imports approximately 60% of its LPG requirements and that around 90% of its imported LPG historically came from Gulf countries through the Strait of Hormuz.

When those flows were disrupted, Indian buyers turned increasingly to suppliers outside the region, particularly the US. American shipments helped replace some of the volumes that were no longer readily available from traditional Gulf sources.

By September, however, Gulf supplies had recovered sufficiently for the UAE to regain the top position. The rebound reflects changing cargo availability and the ability of importers to adjust sourcing as shipping conditions evolve.

The recovery should not be interpreted as proof that all regional supply risks have disappeared. Energy markets remain sensitive to geopolitical developments, shipping access and changes in freight and insurance costs.

Why the UAE Has an Advantage Over the US

One important factor is transportation distance. The UAE is geographically closer to India than the US, allowing cargoes to travel shorter routes in many circumstances.

When freight costs are high or shipping capacity is constrained, shorter routes can make a meaningful difference to the delivered cost of imported fuel. Buyers may also benefit when suppliers can offer cargoes that better match their delivery schedules and regional requirements.

The US played an important role in India’s supply diversification during the disruption, but shipments from American ports generally require longer voyages. That can increase transportation time and exposure to freight and insurance costs.

Business Standard reported in September that US LPG shipments to India had declined sharply as UAE supplies increased, with delivered LPG premiums rising towards $450 per tonne at the time. This illustrated how supply disruptions and transportation expenses can influence buyers’ decisions. Source: Business Standard.

The UAE’s September resurgence therefore reflects more than a change in supplier rankings. It also demonstrates how logistics, regional availability and landed costs can influence the economics of energy imports.

Nevertheless, the relative cost advantage can change. Freight rates, international LPG prices, cargo availability and geopolitical risks all affect which supplier offers the most economical option at a given time.

India’s Total LPG Imports Decline in September

Despite the recovery in Gulf shipments, India’s total LPG imports fell 4% in September to approximately 1.39 million tonnes from the previous month.

This distinction matters because a higher share for one supplier does not necessarily mean that overall demand or imports are increasing. The UAE gained market share partly because its shipments rose while US supplies declined.

A separate comparison with the previous year shows that India’s import volumes were also substantially lower. Financial Express reported that September 2026 LPG imports declined 31.6% year-on-year, from approximately 2.03 million tonnes in September 2025 to 1.39 million tonnes. Source: Financial Express.

Changes in domestic consumption, inventory requirements and purchasing decisions can all influence monthly imports. Therefore, the decline should not automatically be interpreted as a corresponding reduction in household LPG use.

For policymakers and energy companies, the priority remains ensuring reliable supplies for households and commercial consumers while managing import costs and maintaining adequate inventories.

India Continues to Diversify Its LPG Sources

The return of the UAE to the top position does not mean India is abandoning its effort to diversify energy imports.

Indian state-owned refiners have been working to increase purchases from the US under longer-term contracts. In September, Moneycontrol reported that Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation were seeking up to five US LPG cargoes per month for 2027, compared with four under their 2026 contracts.

If finalised, the additional purchases could increase contracted US LPG volumes to approximately 2.76 million tonnes from 2.2 million tonnes in 2026. The proposed increase is intended to widen India’s supplier base and reduce the risks associated with relying heavily on one region. Source: Moneycontrol.

Diversification does not necessarily mean replacing Gulf suppliers permanently. Instead, India can maintain access to multiple markets and adjust its purchasing mix according to availability, price and transport costs.

The UAE and other Gulf countries are likely to remain important suppliers because of their proximity and established energy trade links with India. At the same time, American cargoes can provide an alternative source when regional shipments are disrupted.

What the Supplier Shift Means for Indian Consumers

The changing import mix could influence the cost of supplying LPG to India, but the effect on household cooking-gas prices is not automatic.

The final cost of imported LPG depends on international prices, freight, insurance, currency movements, domestic distribution expenses and government pricing decisions. A switch to a geographically closer supplier may reduce transportation expenses in some circumstances, but that does not guarantee lower retail prices.

India’s LPG supply chain also includes domestic production, import terminals, storage facilities, bottling plants and distribution networks. Any disruption across these stages can affect availability and costs.

For households, the key issue is whether supplies remain reliable and affordable. For the government and oil marketing companies, a diversified import basket can provide greater flexibility when geopolitical events disrupt one source.

The Bigger Picture

The UAE’s return as India’s largest LPG supplier demonstrates how quickly energy trade can change when geopolitical conditions and shipping routes are disrupted. The US helped fill the gap when Gulf supplies were constrained, but the September rebound shows that established regional suppliers can regain market share when shipments recover and transportation economics improve.

For India, the longer-term objective is not simply to choose between the US and the Gulf. It is to build a resilient supply system with access to multiple exporters, dependable shipping routes and sufficient infrastructure to manage disruptions. A broader supplier base can reduce concentration risk, although it cannot eliminate exposure to global prices or geopolitical uncertainty.

Looking Ahead

The next few months will show whether the UAE can maintain its lead as India’s largest LPG supplier or whether the US regains market share as cargo availability and purchasing arrangements change. Further recovery in Gulf shipments could strengthen the region’s position, while longer-term US supply contracts may preserve America’s importance in India’s import basket.

India’s energy security will depend on maintaining reliable access to both regional and international suppliers. Import volumes, freight costs, shipping conditions and the progress of supply contracts will be important indicators to monitor. The September data offer evidence of a recovering Gulf supply network, but continued diversification remains important for protecting India against future disruptions.