In 2027, India intends to import up to 25% of its liquefied petroleum gas from the US, a move that is anticipated to lessen reliance on the Middle East and assist efforts to reach a trade agreement with Washington, according to a report.
The move comes after India experienced its worst LPG shortage earlier this year due to supply disruptions caused by the Iran war and the closure of the Strait of Hormuz. The government implemented emergency measures in order to shift petrochemical feedstocks from industry to homes that use LPG for cooking.
Approximately 90% of India's 21.85 million tonnes of LPG imports in 2025 came from the Middle East, making it the third-largest importer and consumer in the world. Government data shows that about 66% of the nation's LPG use came from imports.
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In one to two months, state-run refiners Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. are anticipated to release bids for US LPG deliveries in 2027. A delegation from the three businesses would probably travel to the US next month to talk about sourcing, Reuters reported.
As New Delhi works to finalise a long-awaited trade deal with the United States within the next three to four months, increased purchases of US energy might help India reduce its trade surplus with Washington, a major demand of President Donald Trump.
In the foreseeable future, India has promised to boost US energy purchases by $10 billion to $25 billion. By 2030, the two nations hope to have $500 billion in bilateral trade.
To counteract the decline in Middle Eastern supplies, India has already increased its spot purchases from the US and other vendors, the report stated. US LPG imports surpassed 1 million tonnes for the first time in June and are predicted to surpass India's initial 2026 annual contract target of 2.2 million tonnes.
India's LPG usage decreased to approximately 14.7 million tonnes between January and June of 2026 due to lower supplies from the Middle East, a decrease of nearly 8% from the previous year. According to preliminary official figures, imports decreased by almost 28% to nearly 7.5 million tonnes.
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According to one estimate, reduced supplies will force India's LPG usage to drop to roughly 30 MT this year. However, as demand recovers to roughly 31 MT in 2027, LPG imports may increase to nearly 20 MT.
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