Industry sources said imports of U.S. LPG are expected to exceed 1 million metric tons this month, marking an unprecedented high and underscoring New Delhi's growing reliance on American energy supplies during a period of geopolitical uncertainty.
The sharp increase comes after the conflict involving the United States, Israel and Iran, coupled with the temporary closure of the Strait of Hormuz, disrupted one of the world's most critical energy shipping routes and forced India to seek alternative sources of supply.
Shift Away From Traditional Middle Eastern Suppliers
Before tensions escalated in the region, India sourced roughly 90% of its LPG imports from Middle Eastern producers. The country typically imports around 2 million metric tons of LPG each month, with Saudi Arabia, the United Arab Emirates, Qatar and Oman serving as major suppliers.
However, concerns over shipping disruptions through the Strait of Hormuz prompted Indian refiners to rapidly diversify their purchases, turning increasingly to the United States despite the higher costs involved.
Prior to the crisis, India had already been planning to increase LPG purchases from the U.S. to approximately 10% of total imports as part of broader efforts to rebalance trade relations with Washington. The disruption accelerated those plans significantly.
According to a trade source familiar with the purchases, Indian refiners moved swiftly into the spot market to secure unprecedented quantities of U.S. LPG, even at elevated premiums.
The source noted that maintaining uninterrupted cooking gas supplies for households became the government's top priority, prompting refiners to absorb higher costs in exchange for supply security.
The sources requested anonymity because they were not authorized to discuss the matter publicly.
Imports Recover After Sharp Decline
Government data show that India's LPG imports fell dramatically to just 696,000 metric tons in April as shipping disruptions affected supply chains.
The situation improved in May, with imports recovering to approximately 1.15 million tons.
June figures are expected to show a further improvement as large volumes from the United States begin arriving at Indian ports.
According to two sources at Indian refining companies, India is on track to receive between 1.1 million and 1.2 million metric tons of LPG from the United States during June alone.
At the same time, supplies from the United Arab Emirates have gradually recovered, reaching an estimated 300,000 to 400,000 metric tons this month.
Government Takes Steps to Protect Domestic Supplies
In response to the supply disruption, Indian authorities implemented a series of measures aimed at safeguarding domestic energy availability.
The government instructed refiners to maximize LPG production, prioritized household LPG distribution, and accelerated the expansion of piped natural gas connections across urban areas.
According to one industry source, these initiatives have already begun reducing India's LPG consumption by between 15% and 20%, helping to ease pressure on available supplies.
The strategy reflects the government's effort to protect millions of households that depend on LPG as their primary cooking fuel.
UAE and Kuwait Step In With Additional Supplies
While the United States has emerged as India's largest alternative supplier during the disruption, Middle Eastern exporters have also begun restoring shipments.
Sources said the UAE offered LPG cargoes loaded from Oman's Sohar Port on a free-on-board basis at premiums of around $100 per metric ton above Saudi Contract Prices (CP), a key regional pricing benchmark.
To facilitate deliveries, Abu Dhabi National Oil Company (ADNOC) reportedly deployed four to five vessels to transport LPG to Sohar, from where cargoes could be loaded for export.
In addition, Indian refiners are expected to receive approximately 45,000 metric tons of LPG from Kuwait during June.
Supply Outlook Improving
Industry participants believe the gradual reopening of the Strait of Hormuz will help normalize supplies in the coming months.
As more Middle Eastern cargoes re-enter the market, LPG availability is expected to improve and prices could begin easing from recent highs.
The return of regional exports would also reduce India's dependence on costly spot purchases from distant suppliers.
U.S. Becomes India's Largest LPG Supplier
Data from energy analytics firm Kpler illustrate the dramatic shift in India's sourcing patterns.
In May, India imported approximately 648,300 metric tons of LPG from the United States, compared with just 134,700 tons from the United Arab Emirates.
Imports from Iran totaled around 145,000 metric tons, largely purchased by smaller companies with limited exposure to U.S. sanctions-related concerns.
Meanwhile, shipments from several of India's traditional suppliers—including Saudi Arabia, Oman and Qatar—remained relatively subdued during the month.
June Data Points to Further Growth
Kpler's preliminary June shipping data indicate that India is scheduled to import approximately:
- 1.07 million metric tons from the United States
- 223,800 metric tons from the United Arab Emirates
- 116,200 metric tons from Iran
- 108,600 metric tons from Kuwait
Additional cargoes are also expected from Oman, Saudi Arabia, Algeria, Qatar and Nigeria.
If current schedules hold, June will mark the strongest month on record for U.S. LPG exports to India, highlighting how rapidly global energy trade flows can shift when geopolitical tensions disrupt traditional supply routes.
The surge also reflects India's determination to shield consumers from shortages, even if doing so requires paying higher prices and sourcing fuel from suppliers thousands of miles away.