Indian oil companies sign first-ever LPG deal with US for 10% annual imports, announces Hardeep Singh Puri

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Monday that Indian public sector oil companies have signed a one-year agreement to import liquefied petroleum gas (LPG) from the United States for the first time.

In a post on the social media platform X, the minister wrote, “A historic first! One of the largest and the world’s fastest-growing LPG market opens up to the United States. In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing.”

India-US LPG import deal details

The minister recognised India’s position as one of the largest and fastest-growing LPG markets across the globe, saying that the new agreement marks a significant milestone in the country’s efforts to diversify its LPG sources.

Puri further noted that the Indian PSU oil companies have concluded a contract to import around 2.2 million tonnes per annum (MTPA) of LPG for the contract year 2026.

This volume accounts for nearly 10 per cent of India’s annual LPG imports and will be sourced from the US Gulf Coast. He mentioned that this marks the first structured long-term contract involving US LPG specifically for the Indian market.

Puri clarified that the purchase price has been compared to Mount Belvieu, a major reference for global LPG pricing.

He mentioned that teams from Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) recently travelled to the United States for discussions with leading American producers, which have now been successfully completed.

Rising LPG costs

Puri emphasised that the government’s aim to provide affordable LPG to Indian households has particularly benefited women through the Pradhan Mantri Ujjwala Yojana.

He highlighted that despite a more than 60 per cent increase in global LPG prices last year, Prime Minister Narendra Modi made sure Ujjwala consumers paid only ₹500-550 per cylinder, even though the true cost exceeded ₹1,100.

To protect consumers from international price shocks, the Government of India absorbed a burden of over ₹40,000 crore during the year.

He also mentioned that the new US import agreement strengthens the government’s continual efforts to ensure reliable and affordable energy supplies for the country.

(With inputs from agencies.)