- India finalised a one-year contract to import 2.2 million tonnes of LPG from the US in 2026, covering nearly 10% of its annual demand.
- The deal, benchmarked to Mont Belvieu prices, ensures affordable LPG for consumers and deepens strategic energy ties between India and the US.
India has signed its first structured contract to import liquefied petroleum gas (LPG) from the United States, a move aimed at strengthening energy security and diversifying supply amid global market uncertainties.
Union Petroleum Minister Hardeep Singh Puri said state-run oil marketing companies would import 2.2 million tonnes of LPG per year from the US in 2026, covering nearly 10% of India’s annual requirement. The LPG will be sourced from the US Gulf Coast, with prices benchmarked to Mont Belvieu, a key international reference point for pricing.
Officials from Indian Oil, Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) held multiple rounds of negotiations with major U.S. producers before finalising the deal. Puri described it as part of India’s broader strategy to ensure affordable and stable fuel supplies for consumers.
The minister also highlighted government efforts to shield households from international price volatility. Despite a 60% surge in global LPG prices last year, beneficiaries of the Ujjwala scheme continued to pay Rs 500–550 per cylinder. Meanwhile, the government absorbed more than Rs 40,000 crore in subsidy costs.
The agreement comes as India and the United States explore a broader trade framework, which could include the removal of US tariffs previously imposed on Indian exports, including a 25% levy linked to purchases of Russian crude oil. The announcement comes as New Delhi and Washington negotiate a broader trade pact, potentially removing US tariffs linked to India’s previous Russian crude oil purchases.