Under the one-year supply contract, state-run fuel retailersIndian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation will source LPG from US suppliers including Chevron, Phillips 66 and TotalEnergies Trading. India, the world’s second-largest LPG consumer, currently imports more than half of its domestic requirement, with the Middle East accounting for most of the supply.
Officials said the agreement would diversify India’s sourcing basket at a time when geopolitical tensions and price fluctuations have raised concerns over long-term stability. The shift towards US suppliers, they added, is designed to lower dependence on traditional markets and build a more resilient import chain.
Calling the pact “historic”, Petroleum Minister Hardeep Singh Puri said the US entry into India’s LPG supply mix reflects New Delhi’s broader strategy to secure affordable and reliable access to clean cooking fuel. “One of the fastest-growing LPG markets in the world is now open for US supply,” he said, adding that diversification was essential to protect consumers from sharp price swings.
Although the deal does not guarantee an immediate reduction in domestic cylinder prices, officials noted that a steadier supply base could help moderate cost pressures over time. Stable imports may particularly benefit rural and low-income households, who are most vulnerable to price spikes.
The agreement also comes as India seeks to balance its trade relationship with the US, which has imposed a 50% tariff on India split between reciprocal duties and penalties linked to India’s purchase of discounted Russian oil. Increased energy imports are expected to ease tensions as both sides work toward finalising a broader trade framework.
The LPG deal, officials said, marks a significant step in insulating India’s energy market from external shocks and strengthening its long-term supply security
