India signs 1-year deal to import 2.2 million tonnes of LPG from United States in 2023

New Delhi: India’s state-run oil companies have signed a one-year contract to import around 2.2 million tonnes of LPG from the US Gulf Coast in 2026, marking the country’s first structured long-term LPG deal with American suppliers.

The move signals New Delhi’s push to diversify energy sources and nar-row its trade surplus with the US, which has imposed a 50 per cent tariff on Indian goods.

The agreement—finalised by Indian Oil Corporation (IOC), Bharat Petroleum (BPCL) and Hindustan Pe-troleum (HPCL)—covers nearly 10 per cent of India’s annual LPG imports. Supplies will come from US giants Chevron, Phillips and TotalEnergies Trading SA, amounting to about 48 very-large gas carrier shipments next year.

India currently imports roughly 65 per cent of its LPG consumption of 31 million tonnes, with nearly 90 per cent of its 2024 imports coming from Gulf producers such as the UAE, Qatar, Kuwait and Saudi Arabia.

While India has occasionally purchased US LPG cargoes earlier, this is the first formal structured contract.

Oil Minister Hardeep Singh Puri called the deal a “historic first”, saying it aligns with India’s strategy to secure affordable LPG through diversified sourcing. He noted that the contract uses the Mount Bel-vieu benchmark, introducing greater transparency and international pricing linkage into India’s pro-curement system. A joint PSU delegation had travelled to the US for negotiations in recent months.

India is also seeking to boost energy imports from the US as part of ongoing bilateral trade talks. The country bought about 8 per of its crude oil from the US in the first half of 2025—around 271,000 barrels per day, up 51 per cent from the same period in 2024. However, further increases may be constrained by longer shipping times from the US compared to the Middle East.

Puri highlighted the government’s efforts to shield consumers—especially Ujjwala beneficiaries, who pay Rs 500–550 per cylinder despite actual costs exceeding Rs 1,100. He said the Centre spent over Rs 40,000 crore last year to offset global price increases. Non-Ujjwala consumers currently pay Rs 853 per 14.2-kg cylinder. According to the government, the US LPG deal strengthens India’s energy security while supporting access to clean cooking fuel for millions of households.