India likely to source 10% of LPG imports from US by 2026: Sources

NEW DELHI: India plans to procure around 10 per cent of its liquefied petroleum gas (LPG) imports from the United States starting in 2026, as part of efforts to expand energy trade with Washington and address the trade imbalance between the two nations, according to four industry sources with direct knowledge of the plans.

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Currently, more than 90 per cent of India's estimated 20.5 million metric tonnes of LPG imports in 2024 come from the Middle East. LPG, a mixture of propane and butane, is mainly used as cooking fuel and is imported by state-run companies Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL), and Hindustan Petroleum Corporation (HPCL). These companies distribute it at subsidised rates to households across the country.

"Traditionally, our LPG imports have come from Gulf countries, but we are now exploring the US as a dependable option," said one source who declined to be named due to lack of authorisation to speak to the media. "Diversifying supply sources is a critical part of our strategy."