'Historically, India has depended on the Middle Eastern Gulf for nearly 90 per cent of its LPG imports. Shifting to alternative suppliers is not something that can happen quickly.'

India is ramping up imports of liquefied petroleum gas (LPG) from the United States as supplies from key Gulf exporters remain stranded, with limited alternatives available globally.
In April, India has sourced its highest volumes from the US at 361,000 tonnes, while imports from major West Asian suppliers declined sharply, according to data from maritime intelligence firm Kpler.
The United Arab Emirates, which is India's largest LPG supplier, shipped 163,000 tonnes until April 25, compared with 626,000 tonnes in February, before the onset of the conflict.
Key Points
- India has sharply increased LPG imports from the US amid disruptions in supplies from major Gulf exporters.
- April imports from the US reached 361,000 tonnes, while shipments from UAE and other Gulf nations declined significantly.
- Limited alternative sourcing options and Strait of Hormuz disruptions have tightened global LPG supply conditions.
- India remains heavily dependent on imports, meeting around 60 per cent of domestic LPG demand through overseas supply.
- Government is prioritising household LPG supply while expanding piped natural gas connections to reduce dependency.
Imports from other Gulf producers have also weakened, with 138,000 tonnes arriving from Saudi Arabia, 87,000 tonnes from Qatar and 61,000 tonnes from Iran last month.
India has struggled to replace disrupted Gulf supplies, sourcing only marginal volumes from alternative markets.
Shipments stood at 10,000 tonnes from Argentina and 13,000 tonnes from Chile in April so far.
Gulf Supply Disruptions
Experts say that without a de-escalation in West Asia and re-opening of the Strait of Hormuz, replacing lost Gulf volumes in the near term would remain highly challenging.
"Historically, India has depended on the Middle Eastern Gulf for nearly 90 per cent of its LPG imports," said Younes Azzouzi, petrochemicals manager at Kpler. "Shifting to alternative suppliers is not something that can happen quickly.
"In the current context, where the market is already tight due to disruptions in the Strait of Hormuz, any attempt to source LPG from elsewhere is likely to drive prices even higher, due to elevated freight and market economics," added Azzouzi.
Strait of Hormuz Impact
In March, India's total LPG consumption declined by 13 per cent year-on-year (Y-o-Y) amid supply disruption from the country's major energy sources.
India is dependent on LPG imports for around 60 per cent of its domestic consumption.
Of the total imports, around 90 per cent is sourced from West Asian countries primarily due to proximity and low freight costs.
LPG sales to households fell 8 per cent Y-o-Y while commercial LPG sales declined by almost 48 per cent Y-o-Y in March, according to data from the oil ministry's petroleum planning and analysis cell.
India Energy Demand Shift
LPG supply continues to be affected by the prevailing geopolitical situation, the government said in a press release on April 25.
Supply of LPG has been prioritised to domestic households with more than 51.8 lakh domestic cylinders delivered on April 25, it added.
As the government steps up efforts to expand the use of piped natural gas (PNG), around 5.45 lakh household connections have been gasified since March 2026, while infrastructure has been laid for an additional 2.62 lakh connections.

Feature Presentation: Ashish Narsale/Rediff








