Major Deal Sealed: India to Import 2.2 Million Tonnes of US LPG Annually for Diversified Sourcing
Government Absorbed ₹40,000 Crore Cost to Shield Consumers from Global LPG Price Surge, Minister Puri Reveals
NEW DELHI/WASHINGTON D.C: India’s public sector oil companies have successfully concluded a significant one-year agreement to import Liquefied Petroleum Gas (LPG) from the United States, marking a major step in diversifying the country’s energy sourcing.
Petroleum and Natural Gas Minister Hardeep Singh Puri announced the development in a social media post, stating that the deal covers approximately 2.2 million tonnes per annum (MTPA) of LPG, which will be sourced specifically from the US Gulf Coast.
Minister Puri emphasized that this strategy is aimed at providing secure and affordable supplies of LPG to Indian citizens. He noted that a joint team of officials from Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) had visited the US recently and engaged in several months of detailed discussions with major US producers to finalize the contract.
The Minister underscored the government’s commitment to providing LPG at the lowest global prices to domestic consumers, attributing this to the leadership of Prime Minister Narendra Modi.
Highlighting the substantial financial measures taken to protect consumers, Mr. Puri revealed that even as global LPG prices soared by over 60 per cent last year, the government ensured that beneficiaries under the Pradhan Mantri Ujjwala Yojana (PMUY) continued to receive LPG cylinders at highly subsidized rates—ranging from ₹500 to ₹550. This is significantly below the actual market cost of over ₹1,100 per cylinder.
To maintain these low domestic prices and shield the women of the country from the impact of rising international costs, the Government of India incurred a massive expenditure of over ₹40,000 crore last year.
This new import deal with the US is expected to enhance India’s energy security, stabilize domestic supply chains, and reinforce the government’s ability to maintain affordable LPG pricing across the country.