India’s dependence on imported cooking gas is undergoing a major shift, with liquefied petroleum gas (LPG) imports from the United States expected to cross 1 million metric tonnes in June, marking a record high. The surge comes as supply disruptions from the Middle East force India to diversify its energy sourcing.

Why LPG Imports from the US Are Rising

India traditionally sources nearly 90% of its LPG imports from Middle Eastern countries, including Saudi Arabia, Qatar, and the UAE. However, geopolitical tensions and disruptions around key shipping routes have changed supply dynamics.

As a result, India is increasingly turning to higher-priced supplies from the US to ensure uninterrupted household cooking gas availability.

Supply Disruptions Trigger Shift

Recent disruptions in the Strait of Hormuz and regional tensions led to fluctuations in LPG shipments. According to industry estimates:

• Imports dropped to 696,000 tonnes in April

• Rebounded to 1.15 million tonnes in May

• Expected to remain above 1.1 million tonnes in June

The shift reflects emergency procurement to stabilize domestic supply.

Rising Role of US and Other Suppliers

United States has emerged as a key alternative supplier, with shipments expected to exceed 1 million tonnes in June alone.

Other contributing sources include:

• UAE: ~300,000–400,000 tonnes

• Kuwait: ~45,000 tonnes

• Iran and smaller regional suppliers: variable volumes

Industry data suggests that Indian refiners are actively diversifying imports to reduce dependence on any single region.

Why India Increased US Purchases

Sources indicate that Indian refiners increased spot purchases from the US to:

• Maintain uninterrupted LPG supply for households

• Offset disruptions in Middle Eastern shipments

• Stabilize domestic cooking gas availability

• Balance trade flows with Washington

However, US LPG is generally more expensive than traditional Middle Eastern supplies, increasing procurement costs.

Supply Chain Adjustments in India

To manage the situation, refiners and policymakers have:

• Increased domestic LPG production where possible

• Prioritized household LPG distribution

• Expanded piped gas infrastructure

• Encouraged efficiency in consumption patterns

Reports also suggest a temporary 15–20% reduction in LPG consumption, reflecting both supply constraints and efficiency measures.

Global Market Trends Behind the Shift

According to shipping and energy tracking data, including Kpler estimates:

• US exports to India are rising sharply

• UAE shipments have also increased

• Traditional suppliers like Saudi Arabia and Qatar have reduced volumes temporarily

Analysts say improved stability in shipping routes could gradually restore Middle Eastern supply dominance in the coming months.

The Bottom Line

India’s LPG import pattern is shifting significantly, with the United States becoming a major short-term supplier amid global disruptions. While this ensures supply stability for households, it also highlights India’s growing exposure to global geopolitical and energy market volatility.