The US largest LPG supplier to India story continued in June as the United States retained its position as India’s biggest supplier of liquefied petroleum gas (LPG), extending its lead over traditional Gulf exporters. The latest import data highlights India’s strategy to diversify energy supplies and strengthen energy security amid geopolitical uncertainties in West Asia.
US Largest LPG Supplier to India as Imports Rise in June
According to data from commodity analytics firm Kpler, India imported 773.78 thousand metric tonnes (TMT) of LPG from the US in June, marking a 19.4 per cent increase from May. Overall, India’s LPG imports rose 3 per cent during the month to 1,191 TMT, compared with 1,155 TMT in May.
The UAE emerged as the second-largest supplier, with shipments increasing 16.6 per cent to 157 TMT from 134.7 TMT in the previous month. Saudi Arabia and Kuwait each supplied 64 TMT of LPG during June. The figures underscore the growing importance of the United States in meeting India’s expanding energy demand.
India Diversifies LPG Imports to Strengthen Energy Security
India’s growing reliance on US LPG comes as part of a broader effort to diversify supplies following disruptions caused by the recent West Asia conflict. State-run refiners have already signed a long-term agreement to import 2.2 million tonnes of LPG from the US beginning in 2026, strengthening bilateral energy ties and reducing dependence on Gulf producers.
Industry sources said India has secured adequate supplies of both crude oil and LPG through August, easing concerns over domestic availability after the reopening of the Strait of Hormuz restored the movement of Gulf energy cargoes.
To strengthen energy security, India has expanded LPG sourcing beyond its traditional suppliers, increasing imports not only from the US but also from countries such as Oman, Argentina, Nigeria, Algeria and Egypt. The diversification strategy is aimed at ensuring stable fuel supplies while reducing exposure to regional geopolitical risks.
West Asia Tensions Accelerate India’s Import Strategy
Before the outbreak of the West Asia conflict, nearly 90 per cent of India’s LPG imports passed through the Strait of Hormuz, underscoring the country’s heavy dependence on the Gulf region. Supply disruptions during the conflict prompted refiners to widen their sourcing basket to reduce exposure to geopolitical risks.
Analysts believe India’s diversification strategy is likely to continue even after regional tensions ease. While the Gulf is expected to remain a crucial supplier of crude oil and LPG, refiners are expected to maintain a broader mix of import sources to enhance supply resilience. The evolving import strategy is expected to improve India’s long-term energy security and supply chain resilience.
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