India has taken a major step in securing its energy future by signing its first-ever long-term deal to import liquefied petroleum gas (LPG) from the United States. The one-year agreement will see state-run oil companies bring in 2.2 million tonnes of LPG from the U.S. Gulf Coast in 2026, covering about 10% of India’s total annual LPG imports.
Union Petroleum Minister Hardeep Singh Puri called the pact “historic” and said it would ensure a reliable and affordable LPG supply for millions of Indian households. The deal was finalized after Indian delegations from Indian Oil, Bharat Petroleum, and Hindustan Petroleum met with US producers to negotiate pricing and delivery terms.
The contract is tied to the Mont Belvieu price benchmark, a widely used reference in global LPG trade. This will help India manage costs and align purchases with international market standards. Analysts note that the move reduces India’s dependence on traditional Middle Eastern suppliers, strengthening energy security.
India’s domestic LPG demand has been rising steadily, driven by government initiatives like the Pradhan Mantri Ujjwala Yojana, which provides subsidized LPG connections to low-income families. Despite international LPG prices rising more than 60% last year, the scheme allowed beneficiaries to continue paying low rates, with the government absorbing the extra cost to shield households.
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