New Delhi: India has finalised its first structured LPG import contract with the US, marking a significant milestone in the country’s energy sourcing strategy. Minister of Petroleum and Natural Gas Hardeep Singh Puri announced that PSU oil companies have concluded a one-year agreement to import around 2.2 MTPA of LPG from the US Gulf Coast for 2026, representing nearly 10% of India’s annual LPG imports.
The minister described the development as historic, noting that one of the world’s largest and fastest-growing LPG markets has now formally opened to US suppliers. He said India has been steadily working to secure affordable and reliable LPG supplies by diversifying its procurement base.
As part of this effort, officials from Indian Oil, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited visited the US from July 21 to 24, 2025, according to a PIB release. They held discussions with leading US LPG producers, using Mount Belvieu as the pricing benchmark. The talks concluded with the successful finalisation of the structured contract.
Puri highlighted that under the leadership of Prime Minister Narendra Modi, PSU oil companies have ensured LPG availability to households at some of the lowest global prices. Despite global LPG rates surging by more than 60% last year, Ujjwala beneficiaries continued to receive cylinders at RS500–550, even as actual costs exceeded Rs1,100. The government absorbed the difference, spending over Rs40,000 crore in the previous year to shield families from rising international prices.
The minister said in a post on X that the new sourcing arrangement for 2026 further strengthens India’s energy security and supports continued access to clean cooking fuel for millions of households.
