India Signs Major LPG Import Deal with the US; 10% Imports to Begin from 2026

New Delhi (The Uttam Hindu): Union Petroleum Minister Hardeep Singh Puri announced that India has signed a major agreement to import LPG from the United States for the first time in large quantities. The deal has been finalized for the year 2026, under which Indian state-run oil companies will import around 2.2 million tonnes of LPG. This will account for nearly 10% of the country’s total annual LPG imports.

The minister said that India is among the world’s largest and fastest-growing LPG markets, and this agreement officially opens the route for LPG procurement from the US Gulf region. Mount Belvieu has been chosen as the benchmark for pricing. Officials from IOC, BPCL, and HPCL visited the US in recent months to hold discussions with major LPG producers, leading to the finalization of this agreement.

Puri stated that under Prime Minister Modi’s leadership, the government is consistently working to ensure stable LPG availability and pricing. He said that despite international prices rising by up to 60% last year, Ujjwala consumers continued to receive cylinders at ₹500–550, even though the actual cost was over ₹1,100.

The government provided a subsidy of more than ₹40,000 crore to ensure this relief and to prevent additional financial burden on the public. He added that the new LPG import deal with the USA is another important step toward ensuring reliable and affordable energy supply in India.