India Concludes First-Ever Major LPG Import Deal with US
Announcement
In a historic development, Shri Hardeep Singh Puri, Minister of Petroleum and Natural Gas, today announced that Indian PSU oil companies have successfully concluded a one-year structured contract to import around 2.2 MTPA of LPG from the
US
Gulf Coast for the contract year 2026. This represents close to ten percent of
India’s annual LPG imports and marks the first such structured US LPG contract for the Indian market. The Minister described the decision as a historic development, noting that one of the world’s largest and fastest growing LPG markets has now opened up to the United States.
Engagement with Producers
The Minister stated that India has been consistently working to secure affordable and reliable LPG supplies by diversifying its sourcing options. As part of this effort, a team of officials from
IndianOil,
Bharat Petroleum Corporation Limited (BPCL) and
Hindustan Petroleum Corporation Limited (HPCL) had visited the
United States from 21 to 24 July 2025 and engaged in discussions with major US producers. These discussions, based on
Mount Belvieu as the benchmark for LPG purchases, have successfully concluded with the finalisation of the contract.
Pricing and Subsidy
Shri Puri highlighted that under the leadership of Prime Minister Narendra Modi, PSU oil companies have ensured the provision of LPG at the lowest global prices to households across the country. Even as global LPG prices surged by more than 60 percent last year, Ujjwala beneficiaries continued to receive cylinders at a subsidised price of about ₹500–550, despite the actual cost exceeding ₹1100. The
Government of India absorbed the burden, incurring an expenditure of over ₹40,000 crore in the previous year to shield families especially mothers and sisters from the impact of rising international LPG prices.
Energy Security
The Minister emphasised that this new sourcing arrangement for 2026 is another step in strengthening India’s energy security while ensuring affordable access to clean cooking fuel for millions of households.