Economy

US remains India’s largest LPG supplier in June as well

AI Notice: Content is aggregated and summarized using Artificial Intelligence. Details may contain inaccuracies. Please verify facts independently before making financial or investment decisions.

The US remained the largest supplier of liquefied petroleum gas (LPG) to India in June, solidifying its lead over traditional Gulf suppliers, with imports reaching 773.78 thousand metric tonnes (TMT), up 19.4 percent from May, data from commodity analytics firm Kpler showed.

During the months, India’s LPG imports rose 3 percent to 1,191 TMT from 1,155 TMT in the previous month.

To diversify supplies amid the Iran war, India begun sourcing cooking gas from the US, backed by a long-term deal signed for 2.2 million tonnes for 2026 by state-run refiners.

The UAE was the second-largest LPG supplier with imports reaching 157 TMT, up 16.6 percent from 134.7 TMT in May. Saudi Arabia and Kuwait each supplied 64 TMT of LPG in June.

India has secured adequate supplies of crude oil and LPG through August, easing concerns over domestic availability after the reopening of the Strait of Hormuz allowed Gulf energy supplies to return to the market, industry sources said.

The country has stepped up imports of LNG and LPG from a wider set of suppliers, while increasing LPG purchases from the US and expanding sourcing from countries, including Oman, Argentina, Nigeria, Algeria and Egypt.

Before the war broke out on February 28, around 90 percent of India’s LPG imports used to pass through the Strait of Hormuz, making India deeply dependent on the Gulf for its energy security.

The West Asia conflict has disrupted the supply chain, forcing India to diversify its imports.

The move is part of a broader strategy to diversify energy supplies and reduce dependence on any single country or region as geopolitical risks continue to reshape global energy flows.

Analysts expect India's diversification strategy to outlast the West Asia conflict, with refiners likely to continue expanding their sourcing basket beyond the Gulf even as the region remains a critical supplier of crude and LPG.

Oil flows are expected to stabilise faster than gas supplies once the ceasefire is in place, as crude markets benefit from flexible shipping routes, already-positioned cargoes, and inventories in transit.

Gas flows will likely follow a slower, more complex recovery path, depending on production assessments rather than just the reopening of maritime routes, official sources have told Moneycontrol.

India remains the world's second-largest importer of LPG, with approximately 60 percent of its consumption met by imports, the bulk of which comes from West Asia. Its annual demand is in the range of 30-32 million tonnes, or around 85,000 tonnes a day.

Discover the latestBusiness News,Sensex, andNiftyupdates. ObtainPersonal Financeinsights, tax queries, and expert opinions onMoneycontrolor download theMoneycontrol Appto stay updated!

Find the best of Al News in one place, specially curated for you every weekend.

Stay on top of the latest tech trends and biggest startup news.