A major shift in India’s energy imports has emerged in 2026, with the United States becoming the country’s largest LPG supplier amid supply disruptions in West Asia and changing trade dynamics.
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- The United States became India’s largest supplier of liquefied petroleum gas in 2026, replacing the Middle East as the dominant source of LPG imports.
- LPG is mainly composed of propane and butane and is widely used across India for household cooking, commercial activities, and industrial operations.
- In May 2026, the United States supplied more than 55% of India’s LPG imports, with total shipments reaching approximately 666,000 tonnes.
- Before tensions escalated in West Asia during February 2026, Gulf countries accounted for nearly 60% of India’s LPG consumption and up to 90% of imports.
- Supply disruptions and security concerns in the Strait of Hormuz affected LPG exports from major Gulf suppliers, including Saudi Arabia and the United Arab Emirates.
- Indian Oil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited signed a one-year LPG import agreement with the U.S. Gulf Coast in November 2025.
- The agreement covers approximately 2.2 million tonnes of LPG annually and was intended to meet around 10% of India’s import requirement in 2026.
- India also diversified its LPG sourcing by importing cargoes from Iran, Australia, Russia, Argentina, Congo, Angola, Nigeria, and Cameroon.




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