India is preparing to expand its liquefied petroleum gas (LPG) imports from the United States as part of a broader plan to make its energy supply chain more resilient. The move is aimed at reducing the country’s
reliance on Gulf nations for cooking gas and ensuring a stable supply during periods of geopolitical uncertainty.
People familiar with the matter said state-run oil marketing companies (OMCs) are considering increasing their contracted LPG purchases from the US beyond the current 2.2 million tonnes annually. Discussions are underway to nearly double the contracted volume, although a final decision is yet to be taken, according to a report by Times Of India.
India Looks Beyond The Gulf For LPG Supplies
Alongside the US, India is also exploring alternative sourcing destinations, including Algeria, to diversify its LPG imports. Officials believe widening the supplier base will reduce the risks associated with depending heavily on one region, particularly during times of conflict or supply disruptions.
The strategy reflects India’s long-term effort to strengthen fuel security while meeting the country’s rising demand for domestic cooking gas.
West Asia Conflict Changed India’s Import Strategy
India had signed a structured one-year agreement with the United States in November 2025 to import LPG during the 2026 contract year. Under the arrangement, American shipments were expected to account for nearly 10 per cent of India’s annual cooking gas requirement.
The agreement gained greater significance during the conflict in West Asia. As LPG shipments from Gulf countries faced disruptions, supplies from the US helped bridge the gap and ensured that domestic demand remained largely unaffected.
Strategic LPG Reserve Plan Also In Focus
The push to diversify imports is also expected to support the government’s plan to build strategic LPG reserves.
In May, the Petroleum Ministry asked oil marketing companies to prepare an action plan to maintain a 30-day strategic reserve of LPG. Officials believe securing supplies from multiple countries will improve India’s preparedness for future emergencies while making the fuel supply chain more reliable.
LPG Supply Emerged As Key Concern
According to people aware of the discussions, the recent geopolitical tensions exposed vulnerabilities in LPG supply more than crude oil.
One person familiar with the matter said crude oil availability remained relatively stable during the conflict, but securing adequate LPG supplies became a major challenge. The experience has strengthened the case for diversifying import sources and reducing dependence on a single region for one of India’s most widely used household fuels.
