India has strengthened its energy security by signing its first structured agreement to import liquefied petroleum gas (LPG) from the United States. The one-year contract, scheduled for 2026, will supply around 2.2 million tonnes per annum, accounting for nearly 10% of India’s total LPG imports. This marks a major step in diversifying the country’s energy sources.
The Union Petroleum Minister hailed the agreement as a historic moment in India–US energy cooperation, especially as India continues to witness rapid growth in domestic LPG consumption. The deal opens pathways for longer-term supply partnerships and ensures stable, affordable access to LPG for Indian households.
This landmark contract was finalised through the combined efforts of Indian Oil, Bharat Petroleum and Hindustan Petroleum, who jointly negotiated with major American producers. Benchmarking the pricing to the Mount Belvieu hub ensures greater transparency and predictable procurement costs.
The government underscored that the agreement will help shield the public from global price volatility. Even during last year’s surge of over 60% in international LPG prices, welfare beneficiaries continued to receive subsidized rates. The new deal further supports supply stability for millions of families under various social welfare schemes.
With India being one of the world’s fastest-growing LPG markets, this partnership strengthens the nation’s diversification strategy and enhances resilience against potential supply disruptions. It also marks a deepening of India’s energy ties with the United States, reinforcing long-term energy security and affordability.
