India has signed its first-ever one-year LPG import deal with the United States for 2.2 million tonnes in 2026.
Hardeep Singh Puri called the agreement a historic milestone in India’s strategy to diversify LPG sources amid rising global prices.
The deal comes as India works to reduce reliance on Russian crude and continues trade negotiations with the US.
Union Minister for Petroleum and Natural Gas Hardeep Singh Puri announced on Monday that state-owned oil companies have signed the first-ever one-year agreement to import liquefied petroleum gas (LPG) from the United States.
“A historic first! One of the largest and the world’s fastest-growing LPG markets opens up to the United States. In our endeavour to provide secure, affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing,” Puri wrote on X
31 October 2025
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India–US LPG Import Deal
Puri said Indian public sector oil companies have concluded a contract to import nearly 2.2 million tonnes per annum of LPG for the contract year 2026. This volume represents roughly 10% of India’s annual LPG imports and will be sourced from the US Gulf Coast.
He noted that this is a significant, structured, long-term agreement specifically involving US LPG for the Indian market. India is one of the largest and fastest-growing LPG markets in the world, and Puri described the deal as a milestone in efforts to diversify sourcing.
State-owned oil companies —Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, recently visited the US for discussions, which resulted in the successful deal with Washington.
Rising LPG Costs
Puri highlighted the government’s aim to provide affordable LPG to Indian households, noting that women have particularly benefited from the Pradhan Mantri Ujjwala Yojana scheme.
Despite a more than 60% rise in global LPG prices, he said Prime Minister Narendra Modi ensured that scheme beneficiaries paid only ₹500–550 per cylinder, even when market prices exceeded ₹1,100. To shield consumers from international price shocks, the Government of India absorbed over ₹40,000 crore during the year, Mint reported.
India–US Deal and Energy Diversification
According to media reports, New Delhi has been actively working to diversify its energy sources and reduce import dependence on Russian crude oil. ANI reported that “a lot of positive developments” have taken place between New Delhi and Washington after months of negotiations.
“I think we’ve had a lot of positive developments with them recently,” ANI quoted an official as saying. “We have two things going on with them — a reciprocal trade negotiation, and a Russian oil issue, where we’ve seen market improvement on that end.”
