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.

BulletsIn

• 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.