USA Now Accounts for 67% of India’s LPG Imports

The United States has emerged as India’s largest supplier of liquefied petroleum gas (LPG), marking a significant shift in the country’s energy import strategy. The development comes as India diversifies its sourcing away from traditional Gulf suppliers following supply disruptions linked to geopolitical tensions in West Asia and the Strait of Hormuz.

Union Petroleum and Natural Gas Minister Hardeep Singh Puri said the US now accounts for approximately 67% of India’s LPG imports, a dramatic increase from the government’s initial plan to source only around 10% of its LPG requirements from the country. The shift highlights India’s efforts to strengthen energy security by reducing dependence on a single region for critical fuel supplies.

What Happened

Speaking about India’s evolving energy procurement strategy, Petroleum Minister Hardeep Singh Puri said the United States has become the country’s biggest supplier of LPG.

According to maritime intelligence firm Kpler, India imported 912.39 thousand tonnes of LPG from the US in July, making it the largest source of the cooking fuel during the month. The increase follows a steady rise in shipments since early 2026, when geopolitical tensions in West Asia disrupted traditional supply routes through the Strait of Hormuz.

The government had earlier planned to source around 10% of India’s LPG imports from the US. However, imports expanded significantly as Indian oil companies diversified purchases to ensure uninterrupted domestic supplies.

Import Shift at a Glance

Category	Details
Largest LPG Supplier	United States
Share of India’s LPG Imports	Around 67%
US LPG Imports (July 2026)	912.39 thousand tonnes
Previous Major Suppliers	UAE, Qatar, Saudi Arabia
Key Driver	Diversification following West Asia supply disruptions

Sharp Decline in Gulf Supplies

While imports from the US increased sharply, purchases from traditional Gulf suppliers declined substantially.

According to Kpler data, LPG imports from the UAE fell from more than 626 thousand tonnes in February to about 102 thousand tonnes in July. Qatar’s exports also dropped significantly during the same period, while India imported no LPG from Saudi Arabia in July.

The changing import pattern reflects India’s strategy of reducing reliance on a single geographical region after disruptions to shipping routes increased concerns over supply security.

Diversifying India’s Energy Basket

Alongside the United States, India has expanded LPG sourcing from several other countries, including Kuwait, Oman, Bahrain, Iraq, Algeria, Nigeria, Argentina, Australia, Malaysia, Bangladesh, and Egypt.

The broader diversification strategy is intended to improve supply resilience and reduce exposure to geopolitical risks affecting the Middle East, which has historically supplied a majority of India’s imported LPG.

Despite the shift in LPG sourcing, Russia continues to remain India’s largest supplier of crude oil, reflecting the country’s diversified approach across different energy commodities.

Why It Matters

India is one of the world’s largest consumers of LPG, with the fuel serving as the primary cooking energy source for millions of households under both commercial and government-supported distribution programs.

Because domestic production is insufficient to meet demand, the country relies heavily on imports. Diversifying suppliers reduces the risk of supply disruptions caused by geopolitical conflicts, shipping bottlenecks, or production outages in any single region.

The move also strengthens India’s energy security by providing greater flexibility in procurement while improving bargaining power with international suppliers.

Industry Impact

The growing role of the United States in India’s LPG imports reflects deepening energy ties between the two countries. Increasing purchases of US energy products could strengthen bilateral trade while supporting India’s long-term objective of securing reliable fuel supplies from multiple regions.

For global LPG markets, the shift signals changing trade flows as Asian importers reassess supply chains in response to geopolitical uncertainties. Exporters from the Gulf may face increased competition as buyers diversify sourcing, while US producers could benefit from rising demand in one of the world’s fastest-growing energy markets.

The development may also encourage Indian oil marketing companies to pursue longer-term supply agreements with a broader range of international producers to improve supply stability.

Challenges Ahead

While diversification reduces concentration risk, importing LPG from more distant suppliers such as the United States can involve higher transportation costs and longer shipping times compared with sourcing from Gulf countries.

Global freight rates, currency fluctuations, and international energy prices will continue to influence procurement decisions. Maintaining a balanced import portfolio while ensuring affordable LPG supplies for domestic consumers will remain a key challenge for policymakers and state-owned oil companies.

India is also evaluating measures to strengthen its strategic fuel reserves following recent global supply disruptions, highlighting the increasing importance of long-term energy security planning.

Looking Ahead

India’s emergence as a major buyer of US LPG represents a significant evolution in the country’s energy procurement strategy. While the shift was accelerated by geopolitical disruptions, it also aligns with the government’s broader objective of building a more diversified and resilient import portfolio. Future sourcing decisions are likely to balance cost competitiveness with supply security as global energy markets continue to evolve.

For energy companies, policymakers, and global exporters, the changing import mix underscores India’s growing influence in international LPG markets. Industry participants will closely monitor future procurement trends, long-term supply agreements, infrastructure investments, and developments in global shipping routes as India continues strengthening its energy security while supporting rising domestic demand.