India has signed its first-ever structured deal to import liquefied petroleum gas (LPG) from the United States, Union Petroleum Minister Hardeep Singh Puri announced Monday, calling it “a historic first” for the rapidly growing energy market.
State-run oil marketing companies—Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum—have finalized a one-year contract to import 2.2 million tonnes per annum (MTPA) of LPG from the U.S. in 2026. The volume will make up nearly 10% of India’s annual LPG imports.
“A historic first! One of the world’s fastest-growing LPG markets opens up to the United States,” Puri posted on X. He emphasized the deal as part of India’s push to diversify energy sources and secure affordable supply for its citizens.
The agreement is benchmarked to Mount Belvieu, a key U.S. pricing hub, and follows months of negotiations by Indian energy officials with American producers.
“This purchase is based on using Mount Belvieu as the benchmark,” Puri said, noting that teams from the three Indian companies traveled to the U.S. to finalize the discussions.
The move comes amid global energy volatility and ahead of potential geopolitical disruptions, such as U.S. tariffs on Russian energy trade partners.
Despite a 60% surge in global LPG prices last year, Puri said the Modi government shielded consumers, especially Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, by capping LPG cylinder prices at ₹500–550. “The actual cost was over ₹1,100,” he said.
The government absorbed much of the burden, spending over ₹40,000 crore in subsidies in the last fiscal to protect low-income households from price shocks.
