India Signs First-Ever LPG Import Deal With US: Hardeep Puri

Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Monday that public sector oil companies have signed their first-ever one-year agreement to import liquefied petroleum gas (LPG) from the United States. The move marks a major step in bolstering the country’s long-term energy security and diversifying its supply sources. The minister announced the development in a social media post, describing it as a “historic first” for India’s LPG sector. He wrote in his post, "A historic first! One of the largest and the world's fastest-growing LPG market opens up to the United States. In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing. In a significant development, Indian PSU oil companies have successfully concluded a 1-year deal for imports of around 2.2 MTPA LPG." According to Puri, the agreement covers 2.2 million tonnes per annum (MTPA) for the 2026 contract year. This accounts for nearly 10 per cent of India’s annual LPG imports, marking a notable shift as these supplies will be sourced from the US Gulf Coast. He noted that this is the first structured long-term contract for American LPG destined for the Indian market. Pricing Benchmarks And Industry Engagement The minister explained that the deal has been priced against the Mount Belvieu benchmark, a widely recognised global reference point for LPG. He also revealed that teams from Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) had engaged with leading US producers in recent months to finalise the agreement. These engagements underline India’s push to diversify energy sources at a time when global supply chains remain susceptible to geopolitical and market fluctuations. Affordable LPG Beyond diversification, Puri spotlighted the government’s continued focus on shielding Indian households from rising international fuel prices. He noted that despite global LPG rates jumping over 60 per cent, Prime Minister Narendra Modi ensured that Ujjwala beneficiaries paid only Rs 500–550 per cylinder, while the actual price exceeded Rs 1,100. This required the Government of India to absorb more than Rs 40,000 crore in subsidies.