India’s LPG dependence on U.S. | Explained
India has significantly increased its reliance on the United States for liquefied petroleum gas (LPG), with U.S. imports now accounting for 67% of India's supply. This shift is part of a strategic move to diversify energy sources away from West Asia due to geopolitical instability in the Strait of Hormuz.
Why it matters
The shift highlights India's evolving energy security strategy and the potential risks of becoming overly dependent on a single geopolitical partner for critical resources.
The Minister of Petroleum and Natural Gas, Mr Hardeep Singh Puri, said last week that 67% of India’s liquefied petroleum gas (LPG) came from the U.S.
Although he didn’t mention the timeframe for when energy-hungry India “achieved” this, it is clearly a drastic shift from an earlier government decision to source about 10% of cooking gas from the U.S.
As part of crisis management, India, the world’s second-largest importer of LPG, started buying cooking gas from the U.S., backed by a long-term deal signed for 2.2 million tonnes for 2026 by state-run oil refiners, even as finer details on exact contracted $/tonne or landed cargo price have not been publicly disclosed.
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