India’s public sector oil companies have finalised a one-year contract to import about 2.2 million tonnes per annum (MTPA) of liquefied petroleum gas (LPG) from the United States Gulf Coast in 2026, marking the first structured supply agreement of US LPG for the Indian market.
Contract based on US benchmark
According to an X post by Union Petroleum Minister Hardeep Singh Puri, the deal represents close to 10 per cent of India’s annual LPG imports. The agreement is benchmarked to Mont Belvieu, a key pricing reference for LPG in the US.A team from Indian Oil Corporation, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation visited the US in recent months to meet with major producers before finalising the contract.
A historic first!
One of the largest and the world’s fastest growing LPG market opens up to the United States.
In our endeavour to provide secure affordable supplies of LPG to the people of India, we have been diversifying our LPG sourcing.
In a significant development,…
— Hardeep Singh Puri (@HardeepSPuri) November 17, 2025
Government support for domestic consumers
Puri said the move aligns with efforts to diversify India’s LPG sourcing and ensure secure and affordable supplies. He added that, under the current government, public sector oil companies have kept domestic LPG prices comparatively low.He stated that although international prices rose by over 60 per cent last year, Pradhan Mantri Ujjwala Yojana consumers continued to receive cylinders at ₹500–550, while the actual cost exceeded ₹1100.
The government, he said, absorbed around ₹40000 crore during the period to limit the burden on households.
The minister said the deal supports India’s goal of strengthening supply stability for LPG users across the country.
