News Report
In a landmark move aimed at boosting India’s energy security, the Government of India has concluded its first structured long-term LPG import contract with the United States. Announcing the development, Petroleum and Natural Gas Minister Hardeep Singh Puri said Indian PSU oil companies will import around 2.2 million tonnes per annum (MTPA) of LPG from the US Gulf Coast for the contract year 2026.
The agreement accounts for nearly 10% of India’s yearly LPG imports, making it a significant diversification of the country’s supply base. “One of the world’s largest and fastest-growing LPG markets has now formally opened up to the United States,” the Minister said, calling the development historic.
Negotiations Led by PSU Team
A combined delegation from IndianOil, BPCL, and HPCL visited the US between 21–24 July 2025 to negotiate with leading American LPG producers. Pricing discussions were based on the widely followed Mont Belvieu benchmark, resulting in the finalization of this structured contract.
Ensuring Affordable LPG for Households
Highlighting the government’s efforts to keep LPG affordable, Shri Puri noted that despite global prices rising by more than 60% last year, Ujjwala beneficiaries continued paying only ₹500–550 per cylinder, while actual costs crossed ₹1100.
The government absorbed the difference, spending over ₹40,000 crore to protect low-income families.
Strengthening Energy Security
The new import arrangement is expected to bolster India’s access to clean cooking fuel and ensure reliability of supply, especially as domestic LPG consumption continues to rise. The Minister said the deal represents another step in securing “affordable, stable energy for millions of Indian households.”