- India initially planned to source 10% of LPG from the US earlier this year
- The US now supplies about 67% of India’s LPG imports, a sharp increase
- The decision was made independently of Strait of Hormuz security concerns
India's liquefied petroleum gas (LPG) import strategy has undergone a significant shift in recent months, with the United States emerging as the country's largest supplier.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri said India had initially planned to source only a relatively small share of its LPG requirements from the US. However, that share has increased sharply over the past few months as the country's import strategy evolved.
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Speaking about India's energy imports, Puri said the government had decided earlier this year to source around 10% of the country's LPG requirement from the US.
At the time, the decision was taken independently and was not linked to concerns surrounding developments in the Strait of Hormuz.
The plan had raised questions over whether India needed to look as far as the US for LPG when suppliers in geographically closer markets were already available. However, subsequent developments have significantly changed the sourcing landscape.
India decided autonomously to import 10% of its LPG requirements from the US at the beginning of the year, Puri said, adding that "some wondered would we need 10% when we have suppliers nearby".
"Today, the United States accounts for something like 67% of our LPG imports" he pointed out. "In other words, as some doors closed, others opened."
Puri's remarks highlight the rapid change in India's LPG import basket. While India continues to source crude oil and LPG from multiple countries, the US has now emerged as the dominant supplier of LPG imports.
India relies on imports to meet a significant portion of its energy requirements, including LPG, which is widely used by households for cooking.
For a major energy consumer like India, diversifying import sources can help strengthen energy security and reduce exposure to disruptions in any single region.
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The shift in LPG sourcing also reflects India's efforts to maintain stable energy supplies while adapting to changing global market conditions.
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