LPG Update: The Indian government is taking significant measures to enhance the availability of cooking gas (LPG). Reports suggest that state-owned oil companies in India are planning to almost double their procurement of LPG from the United States. This initiative aims to decrease reliance on Gulf countries, ensuring a steady gas supply in case of global crises. Let’s delve into the specifics.
Presently, India imports around 2.2 million tons of LPG from the United States annually. As per a reports, the government is contemplating nearly doubling this quantity. India is also looking into boosting LPG imports from other nations like Algeria to diversify its gas sources and reduce dependence on a single region.
During recent tensions in West Asia and the Iran-Israel-US conflict, disruptions in the transit of LPG vessels through the Strait of Hormuz raised concerns about gas availability in India. The United States emerged as a key alternative LPG supplier during this period, providing crucial support.
Government officials noted that while the availability of crude oil wasn’t a major worry, the vulnerability of LPG supplies was significant. Apart from Gulf nations, very few countries globally produce LPG on a large scale. Hence, additional supplies from the United States offered substantial relief to India.
The government aims not only to ramp up imports but also to establish a 30-day strategic reserve of LPG. This reserve will ensure uninterrupted cooking gas supply for at least 30 days in case imports are temporarily halted due to any reason. This reserve will complement the existing 45-day stock maintained by oil companies for meeting domestic and commercial gas cylinder demands.
Statistics reveal that in 2025, the US accounted for less than 8% of India’s total LPG imports. However, after a one-year agreement signed in November 2025, this share surged to 65% by June 2026, showcasing the growing role of the US in meeting India’s LPG requirements. India has also diversified its gas sources by procuring from countries like Argentina, Nigeria, and Malaysia.
Experts believe that diversifying gas sources will bolster India’s energy security, mitigating risks of shortages during conflicts or disruptions. Increased energy imports from the United States could further enhance bilateral trade relations between India and the US. This governmental move is not merely about augmenting gas purchases but is viewed as a significant and forward-thinking step towards bolstering India’s energy security, strategic readiness, and ensuring a stable gas supply.