India is preparing to significantly increase its liquefied petroleum gas (LPG) purchases from the United States in 2027 as part of a broader strategy to diversify energy supplies and reduce dependence on the Middle East. According to sources familiar with the matter, the country could source up to 25% of its LPG imports from the US, strengthening supply security while supporting ongoing trade discussions between the two nations.
The move follows major disruptions earlier in 2026, when geopolitical tensions and interruptions around the Strait of Hormuz affected LPG shipments to India. The supply challenges created one of the country’s most serious LPG shortages, forcing the government to take emergency measures, including redirecting industrial petrochemical resources to meet household cooking fuel requirements.
India, the world’s third-largest oil importer and consumer, has traditionally relied heavily on Middle Eastern suppliers for LPG. In 2025, nearly 90% of India’s imported LPG came from the region, while imports accounted for around two-thirds of the country’s overall LPG consumption. The latest plan aims to create a more balanced supply network by increasing purchases from alternative sources.
State-owned fuel companies, including Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation, are expected to issue supply tenders for US LPG shipments in the coming months. Representatives from these companies may also visit the United States to discuss future sourcing agreements and strengthen supplier relationships.
Increasing energy purchases from the US could also contribute to reducing India’s trade surplus with Washington, which has been a key issue in ongoing trade negotiations. Both countries have been working toward expanding economic cooperation, with India previously committing to increase US energy purchases by billions of dollars in the coming years. The two nations have also set an ambitious goal of reaching $500 billion in bilateral trade by 2030.
India has already accelerated spot purchases from the US and other international suppliers to compensate for reduced Middle Eastern shipments. US LPG deliveries crossed 1 million tons in June 2026 for the first time, exceeding expectations and potentially surpassing India’s earlier annual contract target of 2.2 million tons.
Supply disruptions earlier this year affected India’s LPG availability, with consumption declining during the first half of 2026 compared with the previous year. However, officials expect demand to recover as supply conditions improve, with LPG imports projected to increase in 2027.
The government has emphasized that expanding import sources is necessary to protect consumers from future geopolitical disruptions. By strengthening ties with global suppliers, particularly the United States, India aims to create a more reliable and resilient energy system for the future.
