A historic first for India's LPG market was revealed by Union Minister Hardeep Singh Puri: Indian public sector oil companies have inked a one-year arrangement to import LPG from the United States.
On Monday, Indian public sector oil companies inked a one-year contract to import liquefied petroleum gas (LPG) from the US for the first time, according to Union Minister for Petroleum and Natural Gas Hardeep Singh Puri.The minister wrote, "A historic first!" in a post on the social media site X. The United States gains access to one of the biggest and fastest-growing LPG markets in the world. We have been expanding our LPG sourcing in an effort to give the people of India safe, reasonably priced LPG supply.
Details of the India-US LPG import agreement
The minister acknowledged that India is one of the world's biggest and fastest-growing LPG markets and stated that the new arrangement represents a major turning point in the nation's efforts to diversify its LPG suppliers.
Puri added that a deal to import about 2.2 million tonnes of LPG annually (MTPA) for the contract year 2026 had been reached by the Indian PSU oil companies.
This amount, which comes from the US Gulf Coast, makes up about 10% of India's yearly LPG imports. "This is the first structured long-term contract involving US LPG specifically for the Indian market," he said.
The minister acknowledged that India is one of the world's biggest and fastest-growing LPG markets and stated that the new arrangement represents a major turning point in the nation's efforts to diversify its LPG suppliers.
Puri added that a deal to import about 2.2 million tonnes of LPG annually (MTPA) for the contract year 2026 had been reached by the Indian PSU oil companies.
This amount, which comes from the US Gulf Coast, makes up about 10% of India's yearly LPG imports. "This is the first structured long-term contract involving US LPG specifically for the Indian market," he said.
Puri explained that Mount Belvieu, a significant benchmark for LPG pricing worldwide, has been used to compare the purchase price.
He said that teams from Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), and Indian Oil Corporation Limited (IOCL) recently traveled to the US for talks with top US producers, which have now been satisfactorily concluded.
Growing LPG prices
Puri emphasized that the Pradhan Mantri Ujjwala Yojana, which aims to deliver affordable LPG to Indian homes, has benefited women in particular.
He said that teams from Hindustan Petroleum Corporation Limited (HPCL), Bharat Petroleum Corporation Limited (BPCL), and Indian Oil Corporation Limited (IOCL) recently traveled to the US for talks with top US producers, which have now been satisfactorily concluded.
Growing LPG prices
Puri emphasized that the Pradhan Mantri Ujjwala Yojana, which aims to deliver affordable LPG to Indian homes, has benefited women in particular.
He emphasized that Prime Minister Narendra Modi ensured Ujjwala customers pay only ₹500–550 each cylinder, even though the actual cost topped ₹1,100, despite a more than 60% increase in worldwide LPG prices last year.
Over ₹40,000 crore was spent by the Indian government in order to shield consumers from foreign price shocks.
He added that the government's ongoing efforts to guarantee dependable and reasonably priced energy supplies for the nation are strengthened by the new US import deal.
Over ₹40,000 crore was spent by the Indian government in order to shield consumers from foreign price shocks.
He added that the government's ongoing efforts to guarantee dependable and reasonably priced energy supplies for the nation are strengthened by the new US import deal.
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