News that fits you

Highlights

  • India signs first-ever structured US LPG import deal for 2026
  • Contract covers 2.2 million tonnes—about 10% of India’s annual LPG imports
  • Move aims to diversify supply and help balance trade with the US

Latest news

Oppo Reno 16 Review: Oppo's Most Complete Reno Yet

Oppo Reno 16 Review: Oppo's Most Complete Reno Yet

Quantum Energy Partners with Hero FinCorp to Enable Easy Financing for Electric Scooters

Quantum Energy Partners with Hero FinCorp to Enable Easy Financing for Electric Scooters

Cody Simpson says he "can't walk or talk" after knee injury, damaged vocal cord

Cody Simpson says he "can't walk or talk" after knee injury, damaged vocal cord

Govt open to more support for electric trucks, buses if needed under PM E-DRIVE: PMO Advisor

Govt open to more support for electric trucks, buses if needed under PM E-DRIVE: PMO Advisor

Saroj Super Speciality Hospital Inaugurated in Nava Raipur

Saroj Super Speciality Hospital Inaugurated in Nava Raipur

Nearly 80% India's Chief Tech Officials say AI creating new roles not existing few years ago: Report

Nearly 80% India's Chief Tech Officials say AI creating new roles not existing few years ago: Report

PSB margins likely to stay under pressure in FY27, amid weaker loan rate transmission: Report

PSB margins likely to stay under pressure in FY27, amid weaker loan rate transmission: Report

Adani Group proposes Rs 1.08 lakh crore aluminium project in Odisha, to create over 53,000 jobs: Karan Adani

Adani Group proposes Rs 1.08 lakh crore aluminium project in Odisha, to create over 53,000 jobs: Karan Adani

India signs one-year deal to import 2.2 million tonnes of LPG from US

India’s state-run oil firms have signed a landmark one-year deal to import 2.2 million tonnes of LPG from the US Gulf Coast in 2026, marking a major shift in sourcing strategy and a move to balance trade ties with Washington.

Updated: Sep 02, 2022 10:53
|

PTI

India signs one-year deal to import 2.2 million tonnes of LPG from US

Indian state-run oil companies have signed a one-year deal to import cooking gas LPG from the United States in 2026, marking a push by New Delhi to expand energy purchases from Washington.

The move is seen as an attempt to narrow India's trade surplus with the US - a sticking point for President Donald Trump, who has slapped a 50 per cent tariff on Indian goods entering America.

"Indian PSU oil companies have successfully concluded a one-year structured contract to import around 2.2 million tonnes of LPG from the US Gulf Coast for the contract year 2026," an official statement said on Monday.

The quantity contracted is close to 10 per cent of India's annual LPG imports and marks the first such structured US LPG contract for the Indian market. While India is either self-sufficient or has surplus production in most fuels like petrol, diesel and jet fuel, it imports about 65 per cent of its LPG consumption of 31 million tonnes.

In 2024, about 90 per cent of the 20.4 million tonnes of LPG imports came from UAE, Qatar, Kuwait and Saudi Arabia. It sporadically imported cargos from the US but this is the first time it has entered into a structured contract.

State-owned Indian Oil Corporation (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) will import about 48 very-large gas carriers of LPG in 2026. The supplies will be made by super majors Chevron, Phillips and TotalEnergies Trading SA.

India has offered to raise energy imports from the US as part of the bilateral trade deal that has been under discussions for the past couple of months. New Delhi buys about 8 per cent of its crude oil - the raw material for making petrol and diesel - from the US.

In the first half of 2025, India imported about 271,000 barrels per day (bpd) of US crude, up 51 per cent from 180,000 bpd in H1 2024. Scope for raising crude imports from the US is limited given that shipments take 45 days sea voyage to reach Indian shores - a period during which ships can make six sorties from the Middle East.

Oil Minister Hardeep Singh Puri took to X to announce the LPG deal. "A historic first! One of the largest and the world’s fastest growing LPG markets opens up to the United States," he said.

"In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing. In a significant development, Indian PSU oil companies have successfully concluded a 1 year deal for imports of around 2.2 MTPA LPG, close to 10 per cent of our annual imports - for the contract year 2026, to be sourced from the US Gulf Coast - the first structured contract of US LPG for the Indian market," he said.

This purchase is based on using Mount Belvieu as the benchmark for LPG purchases, he said adding a team from the three PSUs had visited the US and engaged in discussions with major US producers over the last few months, which have been concluded now.

He touted poor Ujjwala consumers - who make up for a third of all LPG users in the country - receiving cooking gas cylinders at just Rs 500-550 while the actual cost was over Rs 1,100. "Government of India incurred the cost of over Rs 40,000 crore last year in order to ensure our mothers and sisters did not feel the burden of rising international LPG prices."

The price of LPG for non-Ujjwala users currently is Rs 853 per 14.2-kg cylinder. For the US contract, the pricing shift - using Mount Belvieu as a benchmark - brings greater transparency and global linkage into India’s procurement model.

For consumers, this diversification strengthens the ability to shield households from global price spikes. "The Minister emphasised that this new sourcing arrangement for 2026 is another step in strengthening India’s energy security while ensuring affordable access to clean cooking fuel for millions of households," the statement added.

ADVERTISEMENT

Up Next

India signs one-year deal to import 2.2 million tonnes of LPG from US

India signs one-year deal to import 2.2 million tonnes of LPG from US

Step-by-step guide to apply for a mortgage loan online with minimal documentation

Step-by-step guide to apply for a mortgage loan online with minimal documentation

Honda Activa 6G: Everything You Need to Know Before Buying

Honda Activa 6G: Everything You Need to Know Before Buying

How much does a ULIP plan really cost? A break-down of all charges

How much does a ULIP plan really cost? A break-down of all charges

Centre plans to borrow Rs 8.20 lakh cr from market in first half of FY27

Centre plans to borrow Rs 8.20 lakh cr from market in first half of FY27

Reliance denies buying Iranian oil amid US sanctions waiver

Reliance denies buying Iranian oil amid US sanctions waiver

ADVERTISEMENT

editorji-whatsApp

More videos

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

Premium petrol price up Rs 2, industrial diesel up Rs 22; no change in normal petrol, diesel rates

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

India's GDP expected to register over 8 pc growth in Sep-Dec: Report

Govt announces seven measures to help boost exports

Govt announces seven measures to help boost exports

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI keeps interest rates on hold after US trade deal boosts outlook

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

RBI proposes to compensate customers up to Rs 25,000 loss due to fraud

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI raises GDP growth projection of Q1, Q2 of FY27

RBI pauses rate cuts, retains interest rate at 5.25 pc

RBI pauses rate cuts, retains interest rate at 5.25 pc

Rupee jumps 122 paise to close at 90.27 against US dollar on India-US trade deal

Rupee jumps 122 paise to close at 90.27 against US dollar on India-US trade deal

Stock markets cheer India-US trade deal: Sensex, Nifty surge 2.5 pc

Stock markets cheer India-US trade deal: Sensex, Nifty surge 2.5 pc

UPI transactions hit record high of Rs 230 lakh crore in 2025-26 till Dec: Govt

UPI transactions hit record high of Rs 230 lakh crore in 2025-26 till Dec: Govt

Categories

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.