Union Petroleum and Natural Gas Minister Hardeep Singh Puri said that Indian public sector oil companies have, for the first time, completed a structured year-long deal to import liquefied petroleum gas (LPG) from the United States in an effort to bolster the nation’s energy security. One of the biggest and fastest-growing LPG markets in the world has formally opened up to long-term sourcing from the United States, Mr. Puri said in a social media post, calling the development a “historic first.” For the duration of the contract year 2026, Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) will import 2.2 million tonnes of LPG annually (MTPA).
The supplies will come from the U.S. Gulf Coast and account for around 10% of India’s yearly LPG imports. According to Mr. Puri, this is the first formal long-term agreement for American LPG to enter the Indian market. Mount Belvieu, a significant worldwide benchmark, has been used to compare the prices. The Minister added that before the contract was finalized, teams from the three state-run companies had held several rounds of talks with significant U.S. producers in recent months.
Mr. Puri emphasized that beneficiaries of the Pradhan Mantri Ujjwala Yojana continued to pay only ₹500–₹550 a cylinder despite global LPG prices rising by more than 60% last year, reiterating the government’s commitment to protecting consumers from price swings. He continued, “The government absorbed over ₹40,000 crore to maintain affordability for households.” According to Mr. Puri, the new import deal is in line with India’s larger plan to diversify its energy sources while guaranteeing domestic consumers dependable, long-term access to LPG.
