India has signed its first-ever structured deal to import liquefied petroleum gas (LPG) from the United States, Union Petroleum Minister Hardeep Singh Puri announced on Monday, terming it a “historic first” for the fast-growing energy market.
State-owned oil marketing companies – Indian Oil Corporation, Bharat Petroleum and Hindustan Petroleum – have finalized a one-year contract to import 2.2 million tonnes per annum (MTPA) of LPG from the United States in 2026. This volume will account for nearly 10% of India’s annual LPG imports.
“A historic first! One of the world’s fastest growing LPG markets opens in the US,” Puri posted on
The deal is based on Mount Belvieu, a key U.S. pricing hub, and follows months of negotiations between Indian energy officials and U.S. producers.
“This purchase is based on using Mont Belvieu as a reference,” Puri said, noting that teams from the three Indian companies traveled to the United States to finalize discussions.
The move comes amid global energy volatility and ahead of possible geopolitical disruptions, such as U.S. tariffs on Russian energy trading partners.
Despite a 60 per cent rise in global LPG prices last year, Puri said the Modi government had protected consumers, especially Pradhan Mantri Ujjwala Yojana (PMUY) beneficiaries, by capping LPG cylinder prices between ₹500 and ₹550. “The actual cost was more than ₹1,100,” he said.
The government has absorbed much of the burden, spending more than ₹40,000 crore on subsidies in the last financial year to protect low-income households from price shocks.
