LPG Cylinder Supply Set to Improve as India Expands Gas Imports Beyond Gulf Nations
India is strengthening its LPG supply by increasing imports from the United States and exploring new sourcing countries, reducing dependence on the Gulf region and improving long term energy security.
India Diversifies LPG Imports
India is taking major steps to secure a steady supply of LPG by reducing its dependence on Gulf nations. The government is expanding imports from the United States while also exploring additional suppliers such as Algeria to strengthen the country’s energy security.
The move is expected to improve LPG availability and lower the risk of supply disruptions during global geopolitical tensions.
United States to Play a Bigger Role
State owned oil companies are planning to double their annual LPG imports from the United States to nearly 2.2 million tonnes. Under a one year agreement signed between India and the United States in November 2025, India agreed to source around 10 percent of its annual LPG requirement from the US during 2026.
Officials believe this strategy will help create a more balanced import network and reduce dependence on any single region.
Lessons From the Middle East Crisis
India traditionally met a large share of its LPG demand through Middle Eastern suppliers. However, disruptions caused by the closure of the Strait of Hormuz in March highlighted the risks of relying heavily on one region.
During that period, crude oil supplies remained relatively stable, but LPG availability became more challenging. The United States emerged as India’s largest LPG supplier, helping bridge the supply gap created by the disruption.
Officials Emphasise Supply Security
According to a senior oil industry official, the experience during the Middle East conflict demonstrated the importance of diversifying LPG imports. The United States has significant export capacity, making it a reliable long term partner for India’s growing energy needs.
The government is also evaluating imports from countries including Algeria, Argentina, Nigeria, and Malaysia to build a stronger and more resilient supply chain.
Better Availability for Consumers
By expanding its import sources, India aims to ensure uninterrupted LPG Cylinder availability across the country. The government’s strategy is designed to protect domestic supplies from global uncertainties while strengthening long term energy security for households and businesses.
