US remains India’s largest LPG supplier in June

Data compiled by commodity analytics firm Kpler showed that India imported 773.78 thousand metric tonnes (TMT) of LPG from the US during June, representing a 19.4 per cent rise over May. The country’s total LPG imports also increased during the month, climbing 3 per cent to 1,191 TMT from 1,155 TMT recorded in May.

The United States remained India’s biggest supplier of liquefied petroleum gas (LPG) in June, maintaining its lead over Gulf exporters as New Delhi pressed ahead with efforts to broaden its energy procurement amid geopolitical uncertainty in West Asia.

Data compiled by commodity analytics firm Kpler showed that India imported 773.78 thousand metric tonnes (TMT) of LPG from the US during June, representing a 19.4 per cent rise over May. The country’s total LPG imports also increased during the month, climbing 3 per cent to 1,191 TMT from 1,155 TMT recorded in May.

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The UAE ranked as the second-largest source of LPG for India, with supplies rising to 157 TMT in June from 134.7 TMT a month earlier, an increase of 16.6 per cent. Saudi Arabia and Kuwait each exported 64 TMT of LPG to India during the month.

The stronger inflow of US LPG reflects India’s wider strategy of diversifying its energy supply chain after disruptions linked to the recent West Asia conflict. As part of that approach, state-owned refiners have signed a long-term deal to import 2.2 million tonnes of LPG from the US starting in 2026, reinforcing bilateral energy cooperation while reducing reliance on Gulf suppliers.

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Industry sources indicated that India has arranged sufficient supplies of both crude oil and LPG through August, helping alleviate concerns over domestic availability after the reopening of the Strait of Hormuz enabled Gulf energy shipments to resume normal movement.

In a bid to reinforce energy security, India has broadened its LPG import network beyond its traditional Gulf partners. Alongside higher purchases from the US, the country has also increased imports from Oman, Argentina, Nigeria, Algeria and Egypt.

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Prior to the outbreak of the West Asia conflict, almost 90 per cent of India’s LPG imports moved through the Strait of Hormuz, highlighting the country’s significant dependence on the Gulf. Disruptions triggered by the conflict prompted refiners to expand their supplier base in an effort to minimise exposure to geopolitical risks.

Market analysts expect this diversification drive to persist even if tensions in the region subside. Although Gulf producers are likely to remain central to India’s crude oil and LPG requirements, refiners are expected to continue sourcing supplies from a wider range of countries to strengthen long-term supply resilience.

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