United States Becomes India’s Largest LPG Supplier

India’s liquefied petroleum gas (LPG) import pattern changed in 2026, with the United States becoming India’s largest supplier and the Middle East losing its earlier dominant share. India imports LPG for household cooking fuel, industrial use, and commercial consumption, and the fuel is traded in pressurised cylinders or bulk cargoes.

Liquefied Petroleum Gas in India

Liquefied petroleum gas is a mixture of propane and butane that is stored as a liquid under pressure. India is one of the world’s largest LPG consumers, and its import basket has traditionally depended on Gulf suppliers because of shorter shipping routes and established trade links.

Shift in Import Sources

In May 2026, the United States supplied more than 55% of India’s LPG imports. U.S. shipments to India rose to 666,000 tonnes in May 2026, compared with much lower volumes in February 2026. Before the escalation of tensions in West Asia around 28 February 2026, the Gulf region accounted for about 60% of India’s LPG consumption and up to 90% of its imports.

Supply Disruptions and Trade Routes

Blockades and security disruptions in the Strait of Hormuz affected LPG movement from Gulf exporters such as the United Arab Emirates and Saudi Arabia. The Strait of Hormuz is a narrow maritime passage between Oman and Iran that connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. It is one of the world’s most important energy chokepoints for crude oil and liquefied gases.

India–US LPG Contract

Indian Oil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited signed a one-year contract in November 2025 to import about 2.2 million tonnes per annum of LPG from the U.S. Gulf Coast. The contract was designed to cover about 10% of India’s LPG import requirement in 2026.

Other Suppliers in India’s LPG Basket

India resumed LPG imports from Iran in March 2026 after a seven-year gap. Iran supplied 145,000 tonnes in May 2026, making it India’s second-largest LPG supplier for that month. India also sourced smaller cargoes from Australia, Russia, Argentina, Congo, Angola, Nigeria, and Cameroon.

Important Facts for Exams

• LPG stands for liquefied petroleum gas, and it mainly contains propane and butane.
• The Strait of Hormuz connects the Persian Gulf with the Gulf of Oman and the Arabian Sea.
• Indian Oil Corporation, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited are state-controlled refiners in India.
• The U.S. Gulf Coast is a major export region for LPG and other petroleum products.