India achieved a major breakthrough in its energy sourcing strategy as Union Petroleum and Natural Gas Minister Hardeep Singh Puri announced a landmark deal to import liquefied petroleum gas (LPG) from the United States.
Public sector oil companies signed a one-year agreement to source 2.2 million tonnes per annum (MTPA) of LPG. This marks the first structured long-term arrangement for US-origin LPG destined for India.
Puri described the deal as a “historic first” for the Indian LPG market. Moreover, he emphasised that India, one of the world’s largest and fastest-growing LPG consumers, will now diversify its supply base further. The agreement covers nearly 10 per cent of India’s annual LPG imports and will be sourced from the US Gulf Coast.
Furthermore, the minister explained that pricing has been benchmarked to Mount Belvieu, a key global reference point for LPG. Teams from Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited travelled to the United States for negotiations with major American producers. These discussions culminated in the newly signed agreement.
In addition, Puri reaffirmed the government’s commitment to affordable LPG access, especially for Pradhan Mantri Ujjwala Yojana beneficiaries. He recalled that despite a 60 per cent surge in global LPG prices last year, Ujjwala consumers paid only ₹500–550 per cylinder against an actual cost of more than ₹1,100. The government absorbed over ₹40,000 crore to shield households from international price volatility.
Finally, Puri said the new arrangement strengthens India’s long-term energy security by ensuring reliable, diversified, and affordable supplies. The deal also signals India’s growing role in global energy diplomacy, positioning the country as a resilient player in the international LPG market.
