New Delhi: Amid the West Asia conflict, which has disrupted crude and gas supplies, India is turning towards the United States (US) to buy Liquified Petroleum
Gas (LPG), S&P Global Energy said.
S&P Global Energy analysts said global LPG market is under huge pressure due to cargo scarcity. The US-Iran conflict, has resulted in choking of crude and gas supplies via the Strait of Hormuz, from the region that represents nearly 30 per cent of worldwide LPG availability.
An expert at S&P Global Energy CERA said that India is looking to purchase increasingly LPG from the United States as geopolitical tensions reshape global trade flows. The analyst said that if the West Asia conflict gets dragged on for long, there is a big possibility that New Delhi could for big purchase of American LPG.
Before the start of US-Iran war, India imported about 60% of its total LPG consumption. India’s domestic production supplies around 41 per cent of the LPG demand.
LPG bookings close to normal in India
Meanwhile, in a major sigh of relief, bookings for domestic LPG refills are approaching pre-war normal levels in India. However, the concerns regarding supplies still persists as restrictions on commercial consumers, including hotels, remain in place.
Following military strikes by the US and Israel on Iran on February 28, 2026, Tehran retaliated with full force, eventually effectively shutting the Strait of Hormuz. This strategic waterway is a crucial shipping corridor used by countries such as Saudi Arabia, Qatar and the UAE to export crude oil, gas and LPG to several countries, including India.
The Indian government has classified energy data as a matter of national security, mandating refiners, LNG importers, pipeline operators, city gas distributors and petrochemical firms, across both public and private sectors, to disclose production, imports, stock levels and consumption patterns, on a regular basis.
